01877cas a2200241 a 4500 AALejournalIMF006794 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455209392 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Deconstructing the International Business Cycle : Why does a U.S. sneeze give the rest of the world a cold? Washington, D.C. : International Monetary Fund, 2010. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The 2008 crisis underscored the interconnectedness of the international business cycle, with U.S. shocks leading to the largest global slowdown since the 1930s. We estimate spillover effects across major advanced country regions in a structural VAR (SVAR) using pre-crisis data. Our new method freely estimates the contemporaneous correlation matrix for underlying shocks in the VAR and (uniquely, to our knowledge) the associated uncertainty. Our results suggest that the international business cycle is largely driven by U.S. financial shocks with a significant impact from global shocks, mainly reflecting commodity prices. Other advanced economic regions play a much smaller and regional role in growth spillovers. Our findings are consistent with the emerging evidence on the current crisis. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2010/239 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/239/001.2010.issue-239-en.xml IMF e-Library