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Spillover (economics): Difference between revisions - Wikipedia

Spillover (economics): Difference between revisions

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=== Safe-Haven Economies ===
Certain developed economies are sensitive to some economic phenomena that can overwhelm spillover effects, regardless of their strenghtstrength. For example Japan, the United States, and the Eurozone, all influenced by spillover effects from China, this influence is partly offset by investors seeking safety in their respective markets during global market uncertainties.<ref name=":2" /> So, if one of the economies has some difficulties, investments shift to the remaining safe-havens.
 
This effect was seen with the U.S. investment inflows during the EU's struggles with the Greek debt crisis in 2015. As funds flowed into U.S. Treasuries, yields decreased, reducing borrowing costs for American consumers, borrowers, and businesses. This serves as an illustration of a positive spillover effect from the perspective of U.S. consumers.<ref name=":2" />