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We study the role and the interaction of the quality of institutions and of counter-cyclical policies in leaning against the Global Financial Cycle (GFC) in Emerging Economies (EMEs). We show that heteroegeneity in institutional strength is a key determinant of the different effects of the GFC...
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A growing literature stresses the importance of the “global financial cycle”, a common global movement in asset prices and credit conditions, for emerging market economies (EMEs). It is argued that one of the key drivers of this global cycle is monetary policy in the U.S., which is...
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This paper examines how structural policies can influence a country's risk of suffering financial turmoil. Using a … can affect financial stability by either shaping the financial account structure, by reducing the risk of international … financial contagion, or by directly reducing the risk of financial crises. Differentiated capital controls are found to affect …
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