Financial Frictions and Business Cycles in Middle-Income Countries /

A standard DSGE small open economy model can not generate the cyclical regularities of middle-income countries. It predicts excessive consumption smoothing, and procyclical, instead of countercyclical, real net exports. Previous studies have solved this problem by increasing the shocks' persist...

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Bibliographic Details
Main Author: Guajardo, Jaime
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2008.
Series:IMF Working Papers; Working Paper ; No. 2008/020
Online Access:Full text available on IMF