International Economics
16th Edition
ISBN: 9781305887633
Author: Robert Carbaugh
Publisher: Cengage Learning
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How does international banking differ from domestic banking?
What are the similarities and differences of International financial institutions
In some economies, a significant portion of the internal debts, that is, debts of one domestic resident to another are in foreign currency terms. This phenomenon is called “liability dollarization”. How might liability dollarization worsen the financial market disruption caused by a balance of payments crisis and create the conditions for a banking crisis?
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