Recent research within IMF shows that the detrended aggregate output growth of EMEs has strong association with the aggregate output growth of advanced economies and this “association” has in fact increased over time, evidencing not only that the coupling is strong but that it is getting stronger.
Sure, in recent years EMEs have been less affected by recessions in advanced economies owing to improved policy framework and more effective macroeconomic management. But over an entire cycle, the economic prospects of EMEs remain firmly coupled with those of advanced economies. Global adjustments – short term and medium term 10.