The great synchronization of international trade collapse

In this paper we examine the extent of international trade synchronization during periods of international trade collapses and US recessions. Using dynamic correlations based on monthly trade data for the G7 economies over the period 1961 to 2011, our results suggest rather idiosyncratic patterns of international trade synchronization during collapses of international trade and US recessions. During the great recession of 2007 to 2009, however, international trade experienced the most sudden, severe and globally synchronized collapse.