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We examine the role of U.S. monetary policy in global financial stability by using a cross-country database spanning the period from 1870-2010 across 69 countries. U.S. monetary policy tightening increases the probability of banking crises for those countries with direct linkages to the U.S.,...
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-pricing formula applies to far-out-of-the money put options on the stock market when disaster risk dominates, the size distribution of …
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a heteroskedasticity-based estimation technique. The results indicate that increases in what we call the "war risk …
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