International financial intermediation and aggregate fluctuations under alternative exchange rate regimes Public Deposited

Creator Series Issue number
  • 363
Keyword Subject Abstract
  • A two country overlapping generations model is constructed, in which financial intermediation arises endogenously as an incentive compatible means of economizing on monitoring costs. Because of the existence of transaction costs, money markets in the two countries are segmented and investors have differential access to international credit markets. The model is used to generate predictions concerning the role of international intermediation in economic development, and to examine the nature of business cycle phenomena across alternative exchange rate regimes. Disturbances are propagated by a credit allocation mechanism, which also lends a novel flavor to the model's long run properties.
Contributor Date Created
  • 1987-11
Date Modified
  • 03/15/2018
Publisher
  • Federal Reserve Bank of Minneapolis. Research Division.
Resource type

Relationships

In Collection:
Last modified

Downloadable Content

Download PDF

Zipped Files

Download a zip file that contains all the files in this work.

Items