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Recent crises in emerging markets have been heavily driven by balance-sheet or net-worth effects. Episodes in countries as far-flung as Indonesia and Argentina have shown that exchange rate adjustments that would normally help to restore balance can be destabilizing, even catastrophic, for...
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-specific characteristics and policies. Sudden stops now tend to affect different parts of the world simultaneously rather than bunching …
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-specific characteristics and policies. Sudden stops now tend to affect different parts of the world simultaneously rather than bunching …
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, Other People's Money takes the study one step further, proposing a solution that would involve having the World Bank and …
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