The Global Role of the United States and China

Seoul Journal of Economics, Vol. 33, No. 3, 2020

24 Pages Posted: 21 Oct 2020

See all articles by M. Ayhan Kose

M. Ayhan Kose

World Bank; Brookings Institution; Centre for Economic Policy Research (CEPR); Australian National University (ANU)

Csilla Lakatos

World Bank

Franziska Ohnsorge

World Bank

Marc Stocker

World Bank

Date Written: August 30, 2020

Abstract

Economic developments in the United States and China, the world’s two largest economies, can have effects far beyond their shores. A slowdown in these economies would result in considerably lower global growth transmitted through trade, financial, and commodity market channels. Changing U.S. financial conditions could reverberate across global financial markets, with pronounced effects on emerging market and developing economies (EMDEs) that rely heavily on external financing. China’s continued deceleration and re-balancing toward domestic consumption and services will likely put downward pressure on commodity prices worldwide and is expected to adversely affect commodity exporters.

Keywords: United States, China, Spillovers, Uncertainty, Trade, Business Cycles, Global Economy

JEL Classification: C15, E32, E52, F13, H30, O51

Suggested Citation

Kose, M. Ayhan and Lakatos, Csilla and Ohnsorge, Franziska and Stocker, Marc, The Global Role of the United States and China (August 30, 2020). Seoul Journal of Economics, Vol. 33, No. 3, 2020, Available at SSRN: https://ssrn.com/abstract=3685017

M. Ayhan Kose (Contact Author)

World Bank

1818 H Street, NW
Washington, DC 20433
United States

Brookings Institution

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University (ANU)

Canberra, Australian Capital Territory 2601
Australia

Csilla Lakatos

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Franziska Ohnsorge

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Marc Stocker

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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