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Macroeconomic evolution after a production shock : the role for financial intermediation

Vinogradov, Dmitri V. - 2006 - This version: August 29, 2006

Financial intermediaries may increase economic efficiency through intertemporal risk smoothing. However without an adequate regulation, intermediation may fail to do this. This paper studies the effects of a production shock in a closed economy and compares abilities of market-based and...