Bernanke said that the traditional distinction between the core and the periphery is becoming increasingly less relevant, as the mature industrial economies and the emerging-market economies become more integrated and interdependent. Notably, the nineteenth-century pattern, in which the core exported manufactures to the periphery in exchange for commodities, no longer holds, as an increasing share of world manufacturing capacity is now found in emerging markets. An even more striking aspect of the breakdown of the core-periphery paradigm is the direction of capital flows: In the nineteenth century, the country at the center of the world's economy, Great Britain, ran current account surpluses and exported financial capital to the periphery. Today, the world's largest economy, that of the United States, runs a current-account deficit, financed to a substantial extent by capital exports from emerging-market nations.
With the US economy slowing, it is striking how dependent much of the world is still on it powering ahead.
Imports by the United States currently account for about 5 percent of the entire world economy. That is only part of the story. Investors from around the globe own trillions of dollars worth of American companies and property. Millions of workers in the United States regularly send money to their friends and relatives abroad.
Ireland's top exporter is Dell and about 87% of our exports are made by foreign-owned firms.
Many of us have good reason to wish America's economy well.