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worldwide through international funding markets. But the transmission of this external funding shock to the real economy via … quarterly to the Bank of England. I find that the shock to foreign funding caused a substantial pullback in domestic lending … reduction in domestic lending more closely to the size of the funding shock. …
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Given a network of client-clearer relationships, we define central clearing as a function transforming bilateral trading exposures into centrally cleared exposures. By using numerical simulations, we study how this function is affected by the network's topology, focusing on the exposures of the...
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