Bank of Canada paper evaluates degree of banking stress in high-income countries
A Bank of Canada paper published on Friday finds the massive deleveraging during the financial crisis saw high-income countries dominate patterns of capital flows. They also faced the largest banking sector stresses.
Joshua Aizenman and Gurnain Kaur Pasricha, the paper's authors, conduct a cross-country assessment of the links between stress in the domestic financial sector and the capital flight faced in high- and low-income countries during the global financial crisis. They note that while all
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