How different countries (regions) react to the global economic cycle

We begin by identifying the countries (regions) where activity falls less or more than the global average during global recession s (2000-2001, 2008-2009, 2020), bearing in mind that the situation in 2020 may be specific given the effects of different public health restrictions from one country to another. The regions that “suffer” more than the average in recessions are Latin America, oil-exporting countries, Asian emerging countries excluding China and India, and Japan. We then look at why some countries suffer more than others in global recessions. It may be because they have difficulty conducting countercyclical policies (Latin America, Asian emerging countries, India, Japan), are highly indebted (Japan), experience large capital outflows and sharp exchange rate depreciation (Latin America) or, in the case of oil-exporting countries of course , suffer from falling oil prices. We find that weak countercyclical policies play an important role.