In this paper, we use the Empirical Bayes estimation and multiple linear regression approach to examine the impact of the top 5 cryptocurrencies' crash risks on the G-7 and China equity markets' crash risks. MATLAB was used to calculate the crash risks, while Stata software was employed for the...

"In this book, Victor Cha, Andy Lim, and Ellen Kim explore the weaponization of economic interdependence, from its theoretical and empirical origins to its implications for the global order. The authors look at how and in what ways two lead powers in the international system, the United States...

Depth of cross-country international trade engagement is an important generator of stockmarket connectedness, showing how directional attributes of trade can determine greater or lower spillover of stock returns across economies. We premise and test this hypothesis for a group of seven major...

Understanding the structure and properties of production networks is essential to identify the transmission channels from monetary shocks. While growingly studied, this literature keeps displaying critical caveats from which the investigation of G-7 economies is not spared. To fill this gap,...

We develop a new dynamic factor model to jointly characterize global macroeconomic and financial cycles and the spillovers between them. The model decomposes macroeconomic cycles into the part driven by global and country-specific macro factors and the part driven by spillovers from financial...

This study aims to investigate the impact of trade war on G-7 economies. For this purpose a composite variable through the trade war proxies as used in the literature has been created. One proxy of Trade policy uncertainty shocks has been created following the Rigobon and Sack’s model. After...

The paper investigates government R&D spending during the business cycle. When analyzing this expenditure, it is important to mention two opposing aspects: on the one hand, government spending on R&D can be seen as a stimulus measure for the government to mitigate the effects of the recession on...

We study the main shocks driving current account fluctuations for the G6 economies. Our theoretical framework features a standard two-goods inter-temporal model, which is specifically designed to uncover the role of permanent and temporary output shocks and the relation between the real exchange...

Housing affordability is a hotly debated issue on global scale. A lack of affordable housing of decent quality is a chronic problem in urban areas. Governments try to alleviate it by stimulating homeownership among middle-income households and providing social housing for the low-income...

The natural rate of interest, r * , is an important input to determine the appropriate monetary policy stance. Commonly, the measurement is estimated on a single country basis, which ignores the international factors that may affect r *. However, expanding to a multiple country model adds...

This paper investigates unemployment persistence in the 27 EU member states by applying fractional integration methods to quarterly data (both seasonally adjusted and unadjusted) from 2000q1 to 2020q4. The obtained evidence points to high levels of persistence in all cases. With seasonally...

We develop a new dynamic factor model that allows us to jointly characterize global macroeconomic and financial cycles and the spillovers between them. The model decomposes macroeconomic cycles into the part driven by global and country-specific macro factors and the part driven by spillovers...

Recent studies in the international economics literature emphasize the role of home bias in explaining a number of empirical puzzles. In the present study, we test for the following hypotheses: (i) that a home bias effect, which is nevertheless falling over time as traded goods markets become...

Would countercyclical fiscal policy during recessions improve or worsen the gender employment gap? We answer this question by exploring the state-dependent impact of fiscal spending shocks on employment by gender in the G-7 countries. Using the local projection method, we find that, during...