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(output, consumption, and investment) and financial variables (equity and house prices, and interest rates). We find that the …
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(output, consumption, and investment) and financial variables (equity and house prices, and interest rates). We find that the …
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. Domestic assets experience dramatic depreciation and otherwise solvent investment projects and production, especially in the …
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The entire difference between a mild downturn and a devastating crisis is the occurrence of sharp fire sales of domestic assets and possibly foreign exchange and the ensuing collapse in the balance sheets of both the financial and nonfinancial sector. Why and how do such crises materialize? And...
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