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Ozkan, F. Gulcin.

External Finance, Sudden Stops, and Financial Crisis What is Different This Time? / F Gulcin Ozkan. [electronic resource] : F Gulcin Ozkan. - Washington, D.C. : International Monetary Fund, 2010. - 1 online resource (34 p.) - IMF Working Papers; Working Paper ; No. 10/158 . - IMF Working Papers; Working Paper ; No. 10/158 .

This paper develops a two-country DSGE model to investigate the transmission of a global financial crisis to a small open economy. We find that economies hit by a sudden stop arising from financial distress in the global economy are likely to face a more prolonged crisis than sudden stop episodes of domestic origin. Moreover, in contrast to the existing literature, our results suggest that the greater a country's trade integration with the rest of the world, the greater the response of its macroeconomic aggregates to a sudden stop of capital flows.

ISBN: 1455201413 : 18.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781455201419.001 doi

Subjects--Topical Terms:
Domestic Economy
Domestic Goods
Entrepreneur
Entrepreneurs
International Finance
Macroeconomic Aspects of International Trade and Finance

Subjects--Geographic Terms:
China, People's Republic of
Singapore
Taiwan Province of China
Turkey
United States