Hidden Bibliographic Details
| Other authors / contributors: | Aizenman, Joshua.
International Monetary Fund. Research Department.
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| ISBN: | 1283564394
9781283564397
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| Notes: | Includes bibliographical references (pages 32-33).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Annotation This paper interprets contagion effects as an increase in the volatility of aggregate shocks impinging on the domestic economy. the implications of this approach are analyzed in a model with two types of credit market imperfections: domestic banks borrow at a premium on world capital markets, and domestic producers (whose demand for credit results from working capital needs) borrow at a premium from domestic banks. Higher volatility of producers productivity shocks increases both domestic and foreign financial spreads and the producers cost of capital, resulting in lower employment and higher incidence of default. Welfare effects are nonlinearly related to the degree of international financial integration.
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| Other form: | Print version: Agénor, Pierre-Richard. Contagion and volatility with imperfect credit markets. [Washington, D.C.] : International Monetary Fund, Research Dept., ©1997
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