TY - JOUR
T1 - Liquidity traps and monetary policy
T2 - Managing a credit crunch
AU - Buera, Francisco J.
AU - Nicolini, Juan Pablo
N1 - Publisher Copyright:
© 2020, American Economic Association.
PY - 2020/7/1
Y1 - 2020/7/1
N2 - 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.
AB - 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.
UR - https://www.scopus.com/pages/publications/85088824928
U2 - 10.1257/mac.20170040
DO - 10.1257/mac.20170040
M3 - Article
AN - SCOPUS:85088824928
SN - 1945-7707
VL - 12
SP - 110
EP - 138
JO - American Economic Journal: Macroeconomics
JF - American Economic Journal: Macroeconomics
IS - 3
ER -