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September 24, 2021
We display the recent Evergrande crisis, discuss the possibility of default and the possible reactions by the authorities. We also conclude it will not lead to a systematic risk to the whole economy.
August 3, 2016
This approach is characterized by two key assumptions. The first is that the world interest rate is unaffected by economic developments in the small open economy, an exogeneity assumption. The second assumption is that this exogenous interest rate combined with domestic productivity is sufficient to describe equilibrium choices
