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Remarks at the New York Bankers Association Financial Services Forum, New York City.
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Remarks at the New York Bankers Association Financial Services Forum, New York City.
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We study financial fragility, exchange rate crises, and monetary policy in an open economy version of a Diamond-Dybvig model. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to maximize social welfare; if the mechanism fails,...
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