Should we expect financial globalization to have significant effects on business cycles?
Subject: Financial Globalization; Business Cycles; Monte Carlo Methods
jel: jel:C15 | jel:E44 | jel:G15
Empirical research suggests that financial globalization has insignificant effects on business cycles. Based on standard theoretical models it might be conjectured that the effects should be significant. I show that this conjecture is wrong. Theoretical effects of finan... View more