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Financial Frictions, Financial Integration and the International Propagation of Shocks

Author

Listed:
  • Giovanni Lombardo

    (European Central Bank)

  • Luca Dedola

    (European Central Bank and CEPR)

Abstract

risky assets, if asset markets are integrated across the board, reflecting a strong pressure towards the cross-border equalization of external finance premia faced by levered investors. In turn, the resulting global flight to quality may bring about tight international linkages in (de-)leveraging, financial and macroeconomic dynamics.

Suggested Citation

  • Giovanni Lombardo & Luca Dedola, 2010. "Financial Frictions, Financial Integration and the International Propagation of Shocks," 2010 Meeting Papers 288, Society for Economic Dynamics.
  • Handle: RePEc:red:sed010:288
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    References listed on IDEAS

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    JEL classification:

    • G0 - Financial Economics - - General

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