International Financial Intermediation and Aggregate Fluctuations Under Alternative Exchange Rate Regimes

Público
Creator Series Issue number
  • 112
Date Created
  • 1988-02
Abstract
  • This paper presents a two-country overlapping generations model in which financial intermediation arises endogenously as an incentive-compatible means of economizing on monitoring costs. Because of the existence of transactions 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 about 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.

Related information Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department
Publisher
  • Federal Reserve Bank of Minneapolis
Resource type DOI
License

Relações

Em Collection:
Última modificação

Conteúdo disponível para baixar

Baixar PDF

Zipped Files

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

Itens