IMF paper tests conventional wisdom on economic and financial cycles

Contrary to conventional belief, world economic and financial cycles have not become stronger following globalisation, a paper published by the international Monetary Fund finds.

In the paper, Eric Monnet and Damien Puy revisit widely held views about economic and financial cycles – namely that they are driven by the US and are getting stronger and more synchronised due to globalisation. The researchers use a new high-frequency dataset of output, consumer prices, credit and asset prices for a