Plunging Global Stock Markets Do Not Show the Dependence of the World Economy on the Fed

Suppose the price of corn plummets. Does that mean that the world economy is going down the tubes?

Well, it could be the result of the collapse of demand in the world economy leading to less demand for all commodities or it may just be the result of a bumper corn crop. The latter would be good news for the world economy even though it would be bad news for farmers who produce lots of corn.

Such is the case with stock markets. Stock markets move up and down all the time often for reasons that...