Financial intermediation and regime switching in business cycles

Article Abstract:

An analysis of industrial growth in the presence of financial intermediation and a credit market adverse selection problem reveals that adverse selection creates an indeterminacy of equilibrium and that all equilibria display cyclical fluctuations in some configurations. The study also finds that many equilibria display permanent fluctuations and that cyclical contractions involve declines in real interest rates, withdrawals of savings from banks and credit rationing.

Economics, Research and Development in the Social Sciences and Humanities, Capital market, Capital markets, Business cycles

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Capital uaccount liberalization, the cost of capital and economic growth

Article Abstract:

The capital-liberalization permits financial resources to flow from capital-abundant countries to capital-scarce countries. Liberalization invites speculative money flows and increases the likelihood of financial crises with no discernible positive effects on investment, output, or any other real variable with nontrivial welfare implications.

Deregulation, Financial crises

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How does globalization affect the synchronization of business cycles?

Article Abstract:

The effects of different aspects of globalization on output as well a consumption comovement across countries is examined. The patterns of correlations for industrial as well as developing countries within a unified empirical framework are analyzed.

Globalization

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