Liquidity Traps and Monetary Policy: Managing a Credit Crunch

• 成果类型: Article
• 署名作者: Buera, Francisco J.; Nicolini, Juan Pablo
• 署名单位: Washington University (WUSTL); Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20170040
• 发表日期: 2020
• 页码: 110-138
• 关键词: prices

摘要

We study a model with heterogeneous producers that face collateral and cash-in-advance constraints. A tightening of the collateral constraint results in a credit-crunch-generated recession that reproduces some features of the financial crisis that unraveled in 2007 in the United States. We use the model to study the effects, following a credit crunch, of alternative monetary and fiscal policies.