Financial Fragility and Crisis Union in the Asia-Pacific Region
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We examine whether core ASEAN+3 countries might be interested in joining a financial "crisis union," allowing for the role of uncertainty by constructing a stylized real options model of the decision problem involved. We calibrate that model by proxying financial fragility with commonly used bank asset ratios and observe that, according to our criteria, a wider financial crisis union might be more attainable the more encompassing that grouping is; however, our results also reinforce the common perception of pervasive, possibly prohibitive, heterogeneity in these countries' banking and financial systems.
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2008 ◽
Vol 4
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pp. S24-S29
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1995 ◽
Vol 33
(6)
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pp. 677-682
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2019 ◽
Keyword(s):
2018 ◽
Vol 37
(2)
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pp. 121-137
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