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In this paper potential financial linkages between liquidity and bank solvency measures in advanced economies and emerging market (EM) bond and stock markets are analyzedduring the latest crisis. A multivariate GARCH model is estimated in order to gauge the extent of co-movements of these...
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that China's stock market is not immune to the financial crisis, as evidenced by the price and volatility spillovers from … the United States. In addition, HK's equity returns have exhibited more significant price and volatility spillovers from … the United States than China's returns, and past volatility shocks in the United States have a more persistent effec …
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The global financial crisis has highlighted the potential of financial conditions for influencing real economic activity. We examine the linkages between the financial and real sectors in the euro area, finding that (i) bank loan supply responds negatively to declines in bank soundness; (ii) a...
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