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This paper explores the impact of international financial integration on credit markets in Latin America, using a cross-country dataset covering 17 countries between 1996 and 2008. It is found that financial integration amplifies the impact of international financial shocks on aggregate credit...
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Banks may play a catalytic role, but their small size limits their ability to mitigate shock propagation. The ongoing Covid …-19 crisis is not a normal shock, is hitting central players and will likely provoke significant contagion. …
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instruments is effective in recovering the underlying shock. In contrast, identification based on recursive schemes and …
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account for the observed default and leverage dynamics. Following an adverse aggregate shock, banks deleverage through two …
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