As the United States and the G7 were battered by the subprime-induced financial crisis, it was widely assumed that China and India, with little exposure to the subprime loans, would remain relatively immune from the crisis. In fact, the popular “decoupling” hypothesis claimed that since economic growth in emerging markets like China and India was becoming more independent of the United States and Europe, they were no longer as vulnerable to an economic slowdown in these advanced economies. However, China and India hardly were immune from the financial crisis of 2007–2009—their experiences unambiguously underscoring that in an interconnected world, no country is an island.
|Title of host publication||Financial contagion : the viral threat to the wealth of nations|
|Editors||Robert W. KOLB|
|Publisher||John Wiley and Sons|
|Number of pages||7|
|Publication status||Published - 2011|