02167cas a2200253 a 4500 AALejournalIMF013934 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484355183 1018-5941 BD-DhAAL BD-DhAAL Elekdag, Selim. Trade Linkages, Balance Sheets, and Spillovers : The Germany-Central European Supply Chain / Selim Elekdag, Dirk Muir. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (29 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 Germany and the Czech Republic, Hungary, Poland, and Slovakia (the CE4) have been in a process of deepening economic integration which has lead to the development of a dynamic supply chain within Europe-the Germany-Central European Supply Chain (GCESC). Model-based simulations suggest two key policy implications: First, as a reflection of strengthening trade linkages, German fiscal spillovers to the CE4 and more broadly to the rest of the euro area, have increased over time, but are still relatively small. This is explained by the supply chain nature of trade integration: final demand in Germany is not necessarily the main determinant of CE4 exports to Germany. Second, increased trade openness in both Germany and the CE4 implies a greater exposure of the GCESC to global shocks. However, owing to its strong fundamentals-including sound balance sheets and its safe haven status- Germany plays the role of a regional anchor of stability by better absorbing shocks from other trading partners instead of amplifying their transmission across the GCESC. Mode of access: Internet Muir, Dirk. IMF Working Papers; Working Paper ; No. 2013/210 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/210/001.2013.issue-210-en.xml IMF e-Library