, which enables increased leverage and investment. In the absence of frictions in the securitization process, we show that the … be constrained inefficient due to the existence of a pecuniary externality that can result in over or under-investment …. We examine policies to correct over-investment and find that a leverage ratio restriction generates a Pareto improvement …

, interacting in a complex manner (domestic credit, export of goods and services, Foreign Direct Investment . net inflows, saving … services, Foreign Direct Investment . net inflows, savings). Part four highlights the results of the research alongside other …