Governments free-ride US bailout: National Bank of Austria paper

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A National Bank of Austria paper, published on Monday, says governments and banks may have received indirect funding from financial institutions bailed out during the financial crisis.

Friederike Niepmannand and Tim Schmidt-Eisenlohr, the paper's authors, use a model of international contagion with government intervention to examine how the interests of countries diverge in response to a banking crisis using real international spillover effects and government intervention in the framework.

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