The Impact of the Us Slowdown on the UK Economy
4 Pages Posted: 26 Jul 2005
In this speech, Sushil B Wadhwani, argues that conventional macroeconometric models are likely to significantly understate the impact of a US slowdown on the UK economy. Linkages that might not be captured well by models include the effects of significant foreign direct investment, the fact that the United Kingdom's sectoral specialisation resembles that of the United States, possible contagion effects on confidence, and the likelihood that domestic prices will be depressed by global excess capacity.
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