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Rational Contagion and the Globalization of Securities Markets
This paper argues that globalization may promote contagion by weakening incentives for gathering costly information and by strengthening incentives for imitating arbitrary market portfolios. In the presence of short-selling ...
Empirical Puzzles of Chilean Stabilization Policy
(The World Bank Publications, 1998-03-05)
This paper reviews Chilean stabilization policy during the 1990s and argues that, while the merits of Chilean policy should be praised, there are four puzzles in conventional interpretations of the Chilean experience ...