The Global Role of the United States and China
Seoul Journal of Economics, Vol. 33, No. 3, 2020
24 Pages Posted: 21 Oct 2020
Date Written: August 30, 2020
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
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