Bank lending main conduit for crisis
In the global crisis, bank-lending ties have been a major channel for the transmission of financial stress from advanced to emerging economies, new research from the International Monetary Fund reveals.
The research finds that banks in western European were the main source of stress that was transmitted. The analysis shows that the effects of the current crisis on capital flows could be long-lasting and a quick return to past international investment patterns should not be expected.
The research
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