Follow the model of international banking with production economy, and keep all settings unchanged. Now assume that

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Follow the model of international banking with production economy, and keep all settings unchanged. Now assume that the shadow interest rate in autarky, $r^{A}$, is lower than the world interest rate \(r, r^{A}

Using the graphical approach, as Figure 9.8, show how international banking improves households' intertemporal resource allocation.

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The Economics Of Banking

ISBN: 9780367405724

1st Edition

Authors: Jin Cao

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Question Posted: Apr 17, 2024 02:00 PM

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Follow the model of international banking with production economy, and keep all settings unchanged. Now assume that

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The Economics Of Banking

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