Empirical evidence - including the current global crisis - suggests that shocks from advanced countries often have a disproportionate effect on developing economies. Can this account for the fact that aggregate fluctuations are larger and more persistent in the latter than in the former economies? And what are the mechanisms at play? This paper addresses these questions using a model of an industrial and a developing economy trading goods and assets...
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INFORMATION
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2009/12/01
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Document de travail de recherche sur les politiques
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WPS5146
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1
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1
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2010/07/01
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Disclosed
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Medium-term business cycles in developing countries
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price of capital