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standard small open economy. In response to shocks to productivity, interest rates, and the discount factor, we find the model … in labor productivity …
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We study the role of financial frictions and balance-sheet effects in accounting for the dynamics of aggregate exports, output, and investment in large devaluations. We investigate a small open economy with heterogeneous firms and endogenous export decisions, in which firms face financing...
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an otherwise standard small open economy. In response to shocks to productivity, the interest rate, and the discount … output, and endogenous stagnation in labor productivity …
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