The Transmission of World Shocks to Emerging-Market Countries: An Empirical Analysis
- Topics:
- Investment and Capital Markets
- Tags:
- Analysis,
- Bank Of Canada,
- Finance,
- Financial Planning
- Source:
- Bank of Canada
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Overview: The first step in designing effective policies to stabilize an economy is to understand business cycles. No country is isolated from the world economy and external shocks are becoming increasingly important. The paper documents the sources of macroeconomic fluctuations in 22 emerging-market countries, and measures two specific shocks that could be transmitted from one country to another: a world real output shock and a world real interest rate shock. The analysis shows that there are major differences in the transmission mechanism across emerging-market countries.
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Format: PDF | Size: 307KB | Date: Nov 2004 | Pages: 32
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