Aoki, Kosuke; Benigno, Gianluca; Kiyotaki, Nobuhiro - London School of Economics and Political Science - 2009
We study theoretically how the adjustment to liberalization of international
nancial transaction depends upon the degree of domestic
nancial development.Using a model with domestic and international borrowing constraints, we showthat, when the domestic
nancial system is underdeveloped,...