The Global Role of the U.S. Economy: Linkages, Policies and Spillovers

36 Pages Posted: 8 Feb 2017 Last revised: 3 Aug 2017

See all articles by M. Ayhan Kose

M. Ayhan Kose

Development Prospects Group at the World Bank

Csilla Lakatos

World Bank

Franziska Ohnsorge

World Bank

Marc Stocker

World Bank

Date Written: February 7, 2017

Abstract

This paper analyzes the role of the United States in the global economy and examines the extent of global spillovers from changes in U.S. growth, monetary and fiscal policies, and uncertainty in its financial markets and economic policies. Developments in the U.S. economy, the world's largest, have effects far beyond its shores. A surge in U.S. growth could provide a significant boost to the global economy. Tightening U.S. financial conditions -- whether due to contractionary U.S. monetary policy or other reasons -- could reverberate across global financial markets, with adverse effects on some emerging market and developing economies that rely heavily on external financing. In addition, lingering uncertainty about the course of U.S. economic policy could have an appreciably negative effect on global growth prospects. While the United States plays a critical role in the world economy, activity in the rest of the world is also important for the United States.

Keywords: International Trade and Trade Rules

Suggested Citation

Kose, M. Ayhan and Lakatos, Csilla and Ohnsorge, Franziska and Stocker, Marc, The Global Role of the U.S. Economy: Linkages, Policies and Spillovers (February 7, 2017). World Bank Policy Research Working Paper No. 7962. Available at SSRN: https://ssrn.com/abstract=2913323

M. Ayhan Kose (Contact Author)

Development Prospects Group at the World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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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