In 1990, the cross-border flow of goods and cross-border holdings of stocks and bonds both equaled roughly one-quarter of global GDP. Since then, international trade in goods has doubled relative to GDP and international trade in assets has grown even more rapidly. In today’s interconnected world, nearly all major companies import some of their intermediate inputs from foreign suppliers and obtain some of their capital funding from foreign investors. Furthermore, changes in each country’s interest rates, policies such as tariffs, and technology now transmit more rapidly from country to country with greater potential to shape global growth.
The International Economics Initiative brings together prominent UChicago faculty whose research informs these crucial topics and facilitates application of leading academic frameworks to real-world policy analysis by organizing and disseminating common data platforms for analysis.