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QUESTION

How can government safeguard against domestic financial instability? What are the difficulties in doing so in international banking?

  1. How can government safeguard against domestic financial instability? What are the difficulties in doing so in international banking? 
  2. Using two-country model show that as long as there are technological differences between
  3. countries, labor mobility is beneficial for the world. Decompose the benefits to immigrants' host country and to the immigrants. What drives net benefits in this model? 
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