Guerron-Quintana, Pablo A.; Jinnai, Ryo - Tokyo Center for Economic Research (TCER)
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 growth ¨¢ la Romer and a liquidity friction ¨¢ la Kiyotaki-Moore. A key finding in our study is that liquidity declined around the demise of...