Guerron-Quintana, Pablo - Society for Economic Dynamics - SED - 2014
We study the impact that the liquidity crunch in 2008-2009 had on the U.S. economy's growth trend. To this end, we propose a model featuring endogenous productivity a la Romer and a liquidity friction a la Kiyotaki-Moore. A key finding in our study is that liquidity declined around the Lehman...