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We investigate the effectiveness of fiscal stimuli when banks are undercapitalized and have large holdings of government bonds subject to sovereign default risk. Deficit-financed government purchases then crowd out private expenditure and fiscal multipliers can turn negative. Crowding out...
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"There has been much interest in understanding various dimensions of the growth and integration of emerging Asia with … integration, and the choice of exchange rate regimes in emerging Asia. The book consists of ten chapters, divided into three … mechanism. While some chapters focus specifically on India, which is one of the new growth stars of Asia, many chapters deal …
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