International financial intermediation and aggregate fluctuations under alternative exchange rate regimes
Stephen Williamson () and
No 112, Staff Report from Federal Reserve Bank of Minneapolis
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
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)
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)
Journal Article: 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 (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)
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 ().