However, these movements were similar in scale to those seen in industrial country equity markets, and during the intervening periods when global pressures were less intense, the prices of emerging market equities rebounded more substantially than those of industrial countries.
Reconciling apparent decoupling with integration How do we reconcile the obvious expansion of international trade, labor, and financial flows with the evidence, albeit mixed, of decoupling in the recent period? Three different points can help us achieve this reconciliation. The first point is purely conceptual. The conventional wisdom is that greater international trade leads demand shocks to reverberate more intensely across international markets.