IMF Staff papers, Volume 45 No. 2.

This paper analyzes contagion and volatility with imperfect credit markets. The paper interprets contagion effects as an increase in the volatility of shocks impinging on the economy. The implications of this approach are analyzed in a model in which domestic banks borrow at a premium on world capit...

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التفاصيل البيبلوغرافية
مؤلف مشترك: International Monetary Fund. Research Dept
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1998.
سلاسل:IMF Staff Papers; IMF Staff Papers ; No. 1998/003
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper analyzes contagion and volatility with imperfect credit markets. The paper interprets contagion effects as an increase in the volatility of shocks impinging on the economy. The implications of this approach are analyzed in a model in which domestic banks borrow at a premium on world capital markets, and domestic producers borrow at a premium from domestic banks. Financial spreads depend on a markup that compensates lenders, in particular, for the expected cost of contract enforcement. Higher volatility increases financial spreads and the producers' cost of capital.
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وصف مادي:1 online resource (204 pages)
التنسيق:Mode of access: Internet
تدمد:1020-7635
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students