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This paper incorporates a bubble term in the standard FTPL equation to explain why countries with persistently negative primary surpluses can have a positively valued currency and low inflation. It also provides an example with closed-form solutions in which idiosyncratic risk on capital...
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The "law and finance theory" predicts that the common law system provides the best basis for financial development and … summarises the key points of the theory as well as a number of sceptical views. Moreover, it argues that the theory faces an … and finance theory, its proposition that a common legal tradition implies a similar set of legal rules and procedure to …
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