Contagion, bank lending spreads, and output fluctuations
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Contagion, bank lending spreads, and output fluctuations

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23 pages 1998

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A positive historical shock to external spreads can lead to an increase in domestic spreads and a reduction in the cyclical component of output. Shocks to external spreads immediately after the Mexican peso crisis had a sizable effect on movements in output and domestic interest rate spreads in Argentina.

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