Series: IMF Working Papers
Author(s): JaeBin Ahn
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 2011
Keywords: great trade collapse, payment system, letter of credit, screening, credit, counterparty, counterpart, Macroeconomic Aspects Of International Trade And Finance, Financial Institutions And Services,
This paper provides a theory model of trade finance to explain the "great trade collapse." The model shows that, first, the riskiness of international transactions rises relative to domestic transactions during eco...