Katagiri, Mitsuru; Kato, Ryo; Tsuruga, Takayuki - Graduate School of Economics, Kyoto University - 2013
A fast-growing literature on small open economy models with pecuniary external- ities has provided the theoretical grounds for the policy analysis of macro-prudential regulations and bailouts. Benigno, Chen, Otrok, Rebucci, and Young (2012a) recently showed that the macro-prudential regulations...