Series: IMF Working Papers
Author(s): Luis Brandao Marques , R. Gelos , and Natalia Melgar
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 03 July 2013
Keywords: transmission of global financial shocks, bond, stock returns, equity markets, bond spreads, bond returns, Asset Pricing,
This paper considers the role of country-level opacity (the lack of availability of information) in amplifying shocks emanating from financial centers. We provide a simple model where, in the presence of ambiguity...