EconPapers    
Economics at your fingertips  
 

International financial intermediation and aggregate fluctuations under alternative exchange rate regimes

Stephen Williamson () and Jeremy Greenwood

No 112, Staff Report from Federal Reserve Bank of Minneapolis

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.

Keywords: International finance; Foreign exchange - Law and legislation; Foreign exchange rates (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn
Date: 1988
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://minneapolisfed.org/research/sr/sr112.pdf
http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=393 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=393 [301 Moved Permanently]--> https://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=393)

Related works:
Journal Article: International financial intermediation and aggregate fluctuations under alternative exchange rate regimes (1989) Downloads
Working Paper: INTERNATIONAL FINANCIAL INTERMEDIATION AND AGGREGATE FLUCTUATIONS UNDER ALTERNATIVE EXCHANGE RATE REGIMES (1989)
Working Paper: INTERNATIONAL FINANCIAL INTERMEDIATION AND AGGREGATE FLUCTUATIONS UNDER ALTERNATIVE EXCHANGE RATE REGIMES (1988)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:112

Access Statistics for this paper

More papers in Staff Report from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Jannelle Ruswick ().

 
Page updated 2020-01-14
Handle: RePEc:fip:fedmsr:112