Kawai, Masahiro (contributor); Takagi, Shinji (contributor) - 2008
paying back the interest on international borrowing from greater income. On
the other hand, the lower-return country … international
lending. It is easy to show that welfare is improved in both countries as interest rates are
equalized … benefits of unfettered international capital flows because we
do not live in a perfect world. There are at least three reasons …