An Estimated Small Open Economy Model of the Financial Accelerator
- Topics:
- Inflation,
- Investment and Capital Markets
- Tags:
- Accelerator,
- Marketing,
- IMF,
- Financial Statements,
- Financial Services,
- Financial Accounting,
- Financial,
- Finance,
- Emerging Market,
- Balance Sheets,
- ...
- Source:
- International Monetary Fund
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Overview: This paper develops a small open economy model where entrepreneurs partially finance investment using foreign currency denominated debt subject to a risk premium above and beyond international interest rates. It uses Bayesian estimation techniques to evaluate the importance of balance sheet vulnerabilities combined with the presence of the financial accelerator for emerging market countries.
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Format: PDF | Size: 1,495KB | Date: Mar 2005 | Pages: 28
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