Bignon, Vincent; Breton, Régis; Rojas Breu, Mariana - 2015
a symmetric two-country model with money and imperfect credit market integration. With the Euro Area context in mind, we … capture differences in credit market integration by variations in the cost for banks to grant credit for cross …-border purchases. We show that for a high enough level of this cost, currency integration may magnify default incentives, leading to …