The article explores how financial ups and downs affect the economy in different countries. It looks at 13 developed countries to see if financial shocks can cause economic problems. The study finds that global financial cycles were stronger before and after the Global Financial Crisis. The impact of financial shocks changes over time, with the effects becoming more significant during financial crises. The US housing market crash played a big role in the Global Financial Crisis. Overall, the research shows that financial shocks can have varying effects on different countries' economies.