Dancing in Unison ? Economists lack evidence of increasing synchronization of the world's economies

Globalization is increasing the links between the world's economies, particularly through capital markets and trade flows. Does the growing importance of these links mean that international policy coordination is now a necessity for effective policymaking? How sensible is it, in an increasingly global economy, to make policy decisions largely at the national level? These questions came to the fore when, after a decade of economic expansion, growth slowed simultaneously in early 2000 in the advanced economies known as the Group of Seven (G-7)--Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.