For example, the additional tariffs on Chinese goods and the threat of a trade war with the United States are damaging relations between the two countries, with negative repercussions for global equilibrium. This can have an adverse effect on the entire world economy, as there are only ever losers in a trade war.
4 Supervisory information on banking activities, such as the use of credit transfer instruments and the relative importance of assets and liabilities held for trading, can be useful in enhancing this analysis. Another transmission channel often cited in the literature which has received increasing attention over the past two decades is the credit channel.