An In-depth Analysis on the U.S. Economic Cyclical Impact on the World Economy

Abstract

After the financial crisis of 2008, the Federal Reserve conducted a new round of target rate increases for US federal funds. The accelerated process of economic globalization has led to the spread of small-scale financial turmoil in neighboring countries, leading to larger crises, and to increasingly pronounced synchronized fluctuations in economic cycles among countries. Therefore, an in-depth study of the economic synergies between the U.S. and the rest of the world and a quantitative analysis of the world's economic transmission factors are of great practical significance in promoting the healthy development of the economy, reducing the negative impacts and influences brought about by the fluctuations of other countries' economies, and, in particular, in coping with the spreading of the economic crisis. The central idea of this paper will focus on the economic synergy between the United States and other countries in the world, first of all, it will introduce the background of the topic and the significance of the research, and then summarize the current research on the analysis of scholars on the impact of policy adjustments from the channel of capital flows, the impact on the developed economies, and the combination of empirical research in order to make it clear that in the big country game environment, U.S. monetary policy adjustments brought about by the impact of the multiple perspectives of multi-level research methodology. On this basis, we summarize the adjustments facing the world economy as the United States enters the interest rate hike cycle.