External Finance, Sudden Stops, and Financial Crisis
Download or Read eBook External Finance, Sudden Stops, and Financial Crisis PDF written by Mr.F. Gulcin Ozkan and published by International Monetary Fund. This book was released on 2010-07-01 with total page 36 pages. Available in PDF, EPUB and Kindle.
Author | : Mr.F. Gulcin Ozkan |
Publisher | : International Monetary Fund |
Total Pages | : 36 |
Release | : 2010-07-01 |
ISBN-10 | : 9781455201419 |
ISBN-13 | : 1455201413 |
Rating | : 4/5 (19 Downloads) |
Book Synopsis External Finance, Sudden Stops, and Financial Crisis by : Mr.F. Gulcin Ozkan
Book excerpt: This paper develops a two-country DSGE model to investigate the transmission of a global financial crisis to a small open economy. We find that economies hit by a sudden stop arising from financial distress in the global economy are likely to face a more prolonged crisis than sudden stop episodes of domestic origin. Moreover, in contrast to the existing literature, our results suggest that the greater a country's trade integration with the rest of the world, the greater the response of its macroeconomic aggregates to a sudden stop of capital flows.