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This article argues that high interest rates abroad have substantially depressed private investment in most foreign … that overall, high interest rates have reduced output in the foreign G-7 by 2 1/2 to 4 1/4 percent per year on average over …
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This article reviews recent work comparing properties of international business cycles with those of dynamic general equilibrium models. Two discrepancies between theory and data are described. One concerns the correlation across countries of fluctuations in consumption, output, and...
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The paper considers a model in which private foreign investors make direct long-lived capital investments in a small …, increased investment makes expropriation less likely to occur and that the level of investment chosen by atomistic foreign …
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