What do 70 years of data on world cycles tell us? The decoupling of prices and quantities

Post No. 437.  A new 70-year dataset of world macroeconomic cycles reveals that the growing synchronisation of world economies mainly concerns asset prices. In contrast, the global synchronisation of variables such as GDP and credit remains low. Indeed, this “decoupling” has widened since the global financial crisis. We draw lessons from this for the conduct of public policies.