Can Good Events Lead to Bad Outcomes? Endogenous Banking Crises and Fiscal Policy Responses

Can Good Events Lead to Bad Outcomes? Endogenous Banking Crises and Fiscal Policy Responses
In this paper, we study the impact of labor market restructuring and foreign direct investment on the banking sector, using a dynamic general equilibrium model with a financial sector. Numerical simulations are performed using stylized Chinese data, and banks failures are generated through increases in the growth rate of the labor force, a... READ MORE...

Publication date: November 2006
ISBN 9781451865233
$18.00

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