Conference on International Linkages

With greater interdependency across countries, shocks are more correlated with each other international linkages have become stronger. Developed countries have shown synchronized patterns of co-movement of output, inflation, interest rates, and real equity prices in recent However, less attention has been given to cycle synchronization between developed and developing economies, especially in Asia. Participants from around Asia gathered for the Conference on International Linkages, 2–3 October, in Tokyo. The conference reviewed evidence and modeling of international transmission of shocks by addressing the influence of financial markets on international linkages and the role of regional integration in business cycle synchronization. A search for a best modeling technique brought about many important policy discussions on the nature of global shocks and its implications for international linkages and macroeconomic policy coordination, as well as the possibility of global policy coordination to mitigate the negative impact of global shocks. As one of the conference participants pointed out, “…this global shock is too big for emerging Asia to decouple from developed economies.”

View more on this conference on the ADBI website.