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In the wake of the 1997-98 financial crises, interest rates in Asia were raised immediately, and then reduced sharply … the labor market, they are nevertheless welfare improving because they mitigate distortions due to binding collateral …
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This paper uses international survey data to document two stylized facts. First, risk aversion is associated with anti-trade attitudes. Second, this effect is smaller in countries with greater levels of government expenditure. The paper thus provides evidence for the microeconomic underpinnings...
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