The first phase runs from the time early signs of the crisis appeared in mid-2007 till the Lehman collapse in September 2008. During this period, the growth performance of EMEs outshone that of advanced economies indicating decoupling. The second phase, starting with the Lehman collapse till the first quarter of 2009 was one of “recoupling” when advanced economies pulled EMEs too into the downturn.
The third phase started in the second quarter of 2009 when EMEs started recovering from the crisis ahead of advanced economies suggesting a shift once again to decoupling. So, have EMEs decoupled from the advanced economies? The answer has necessarily to be nuanced. A useful way to visualize decoupling in the wake of the crisis is to distinguish between “trend” and “cycle” decoupling.