Economic Links
Economic links examine the interdependencies that connect economies and markets worldwide: the relationships and trade between countries, the transmission of financial crises and contagion, and the influence of commodities and geopolitics. The discipline also questions the gap between economic theory and the practice observed in the markets. Its sheets highlight the connections that link macroeconomics and the markets, and explain how a localised event can produce repercussions on a global scale.
The 3 sheets in this discipline
- 1Economic Links Between CountriesThe economic linkages between countries -- through trade, capital flows, monetary policy coordination, and financial contagion -- form the backbone of the global economic system. Understanding these links is essential for anticipating how shocks in one region propagate to others.
- 2Commodities and GeopoliticsCommodity markets (energy, metals, agriculture) sit at the intersection of economics and geopolitics. Supply shocks caused by wars, sanctions, or natural disasters can trigger inflation, recessions, and major shifts in global financial markets.
- 3Financial Crises and ContagionFinancial crises are episodes of severe disruption to financial systems, characterized by sharp asset price declines, bank failures, credit freezes, and deep recessions. Contagion is the mechanism by which crises spread from one market, institution, or country to others.