Fixed-premium deposit insurance and international credit crunches

Article OPEN
Mark M. Spiegel;
(1996)
  • Subject: Deposit insurance ; Bank loans ; Loans, Foreign ; International finance

This article introduces a monopolistically competitive model of foreign lending in which both explicit and implicit fixed-premium deposit insurance increase the degree to which bank participation in relending to problem debtors falls below its globally optimal level. Th... View more
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