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This paper develops a theory of financial crisis based on the demand side of the economy. We analyze the impact of … income in the emerging market and in the industrialized country. Whereas trade globalization always has a positive effect on … the emerging market, financial globalization may not, especially when trade costs are high. For intermediate levels of …
Persistent link: https://www.econbiz.de/10013218441
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We analyze the impact of financial globalization on asset prices, investment and the possibility of crashes driven by …
Persistent link: https://www.econbiz.de/10012469420
"This paper develops a theory of financial crisis based on the demand side of the economy. We analyze the impact of … income in the emerging market and in the industrialized country. Whereas trade globalization always has a positive effect on … the emerging market, financial globalization may not, especially when trade costs are high. For intermediate levels of …
Persistent link: https://www.econbiz.de/10013424644
We analyze the impact of financial globalization on asset prices, investment and the possibility of crashes driven by …
Persistent link: https://www.econbiz.de/10013227189
Persistent link: https://www.econbiz.de/10014431033
We extended the Cole and Kehoe model (1996) by adding trade and debt denominated in national currency. We then evaluated some external debt defaults and steep national currency devaluations occurred during last decades. Although default is unlikely, steep devaluation has been repeatedly...
Persistent link: https://www.econbiz.de/10013075668
Persistent link: https://www.econbiz.de/10011439599
This paper investigates the effects of a global uncertainty shock in open economies and the role of country relative risk exposure in the transmission of the shock. We employ an Interacted VAR model to take the time-varying dimension of country relative risk exposure into account. Evidence of...
Persistent link: https://www.econbiz.de/10012984092