Cavallo, Michele; Kisselev, Kate; Perri, Fabrizio; … - 2005
Paper 2005-07
http://www.frbsf.org/publications/economics/papers/2005/wp05-07bk … insufficiently hedged debtors and leading to business
failures and output contractions.
To test that the output contraction is … documented that, especially in small open economy models, this property is
necessary for the model to reproduce the business …