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This paper estimates a two-country model with a global bank, using US and Euro Area (EA) data, and Bayesian methods. The estimated model matches key US and EA business cycle statistics. Empirically, a model version with a bank capital requirement outperforms a structure without such a...
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emanating from the key currency country do more to destabilize the world economy than equal sized shocks coming from the other …
Persistent link: https://www.econbiz.de/10012770634
emanating from the key currency country do more to destabilize the world economy than equal sized shocks coming from the other …
Persistent link: https://www.econbiz.de/10012464405
We study how non-financial multinational companies propagate economic declines from their subsidiaries located in countries experiencing an economic downturn to subsidiaries in countries not experiencing one. We find that investment is 18% lower in subsidiaries of these parents relative to the...
Persistent link: https://www.econbiz.de/10011963371
paper simulates the impact of a short term shock originating from the global financial system on small open economies in the … similarities and differences of the impact of a pure international financial shock on aggregate domestic price inflation and on … output gap for each of the four ASEAN countries. It suggests that the impact of such shock on the sampled economies tends to …
Persistent link: https://www.econbiz.de/10013124358
paper simulates the impact of a shortterm shock originating from the global financial system on small open economies in the … similarities and differences of the impact of a pure international financial shock on aggregate domestic price inflation and on … output gap for each of the four ASEAN countries. It suggests that the impact of such shock on the sampled economies tends to …
Persistent link: https://www.econbiz.de/10009126991
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Persistent link: https://www.econbiz.de/10012437314
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