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This essay argues that the Achilles heel of the international monetary and financial system is that it amplifies the “excess financial elasticity” of domestic policy regimes, ie it exacerbates their inability to prevent the build-up of financial imbalances, or outsize financial cycles, that...
Persistent link: https://www.econbiz.de/10010896652
often unobserved, and maximum entropy serves as the leading method for estimating counterparty exposures. This paper … entropy underestimates it. Using the two benchmarks side by side defines a useful range that bounds the cost of contagion in …
Persistent link: https://www.econbiz.de/10010890912