TY  - BOOK
AU  - Clarida,Richard H.
ED  - National Bureau of Economic Research.
TI  - International Lending and Borrowing in a Stochastic Sequence Equilibrium
T2  - NBER working paper series
PY  - 1986///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - June 1986; Hardcopy version available to institutional subscribers
N2  - This paper is a theoretical investigation of international lending and; borrowing in the context of a general equilibrium model in which national; productivities are subject to random fluctuations and rates of time; preference differ among countries. International capital flows arise from; the efforts of risk-averse households situated in different countries to; self-insure against random productivity fluctuations. We establish the; existence of a rational expectations equilibrium in which the world; interest rate is constant and strictly less than the rate of time; preference of the least impatient countries. The rate of time preference; solvency restrictions on borrowing, and balanced-budget fiscal policies are; rigorously analyzed
UR  - https://www.nber.org/papers/w1944
UR  - http://dx.doi.org/10.3386/w1944
ER  -