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

36 Pages Posted: 10 Feb 2017

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: February 9, 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: United States, Uncertainty, Trade, Business Cycles, Global Economy

JEL Classification: C15, E32, E52, F13, H30, 051

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 9, 2017). CAMA Working Paper No. 13/2017 , Available at SSRN: https://ssrn.com/abstract=2914672 or http://dx.doi.org/10.2139/ssrn.2914672

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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