CHART: 30 Years Of Increasing Global Economic synchronisation

It’s no secret that the world’s economies are increasingly tied together. 

“Globalization and increasingly coordinated and forceful (monetary) policy efforts have raised the correlation of economic growth rates across countries,” writes RBC Capital Markets’ Myles Zyblock in his recent U.S. Equity Strategy Weekly note.  “A more synchronous global business cycle combined with shifts in the financial architecture has encouraged increasingly homogeneous behaviour across and within equity markets.”

Here are charts from Zyblock’s note showing how tied the economies have become and how they got there.

economic coupling

Photo: RBC Capital Markets

 

economic coupling

Photo: RBC Capital Markets

 

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