This paper interprets contagion effects as an increase in the volatility of aggregate shocks impinging on the domestic … capital needs) borrow at a premium from domestic banks. Higher volatility of producers’ productivity shocks increases both …

This paper studies the volatility of consumption relative to output in the context of a simple general equilibrium … horizons and endogenous terms of trade reduce the volatility of consumption, the model fails to generate sufficient serial …

volatility. Expanding the sample to 121 developing countries confirms this result, although this role of shock-absorber fades …-whether financial intermediation is performed through banks or markets-for macroeconomic volatility, against the backdrop of increased … sector development acts as a shock-absorber in poor countries, dampening the transmission of terms of trade shocks to growth …

China's GDP growth slowdown and a surge in global financial market volatility could both adversely affect an already … negative GDP shock in China (equivalent to a one-off one percent growth shock) could have significant global macroeconomic … volatility could translate into a fall in world economic growth of around 0.29 percentage points, but it could also have negative …

Even prior to the extreme volatility just observed, output growth volatility-following protracted decline … country to transmit rapidly to other countries, creating the potential for heightened global volatility. The higher …

How does access to credit impact consumption volatility? Theory and evidence from advanced economies suggests that … volatile than income, indicates that financial reform further increases the volatility of consumption relative to output. We … consumption volatility. Calibration of the model for pre and post financial reform in India provides support for the model's key …