Global trade structures drive belief-based economic fluctuations, impacting international economies.
The article explores how different ways of trading goods between countries can lead to economic fluctuations driven by beliefs. When investment goods are not traded internationally but borrowing and lending are allowed, there can be more uncertainty in the economy. However, if both consumption and investment goods are traded without international borrowing and lending, or if only investment goods are traded with financial transactions, the level of uncertainty is similar to a closed economy. The way countries trade with each other can affect how stable or unstable their economies are.