Debt-deflation: concepts and a stylised model

This paper proposes a model of how agents adjust their asset holdings in response to losses in general equilibrium. By emphasising the relation between deflation and financial distress, we capture some original features of the early debt-deflation literature, such as distress selling, instability, and endogenous monetary contraction.

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Year of publication:	2005-04
Authors:	Peter, Goetz von
Institutions:	Bank for International Settlements (BIS)
Subject:	Asset Prices \| Inside Money \| Debt-Deflation \| Leverage \| Refinancing \| Losses \| Financial Distress \| Distress Selling \| Credit

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Extent:	application/pdf text/html
Series:	BIS Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 176 56 pages
Classification:	E31 - Price Level; Inflation; Deflation ; E51 - Money Supply; Credit; Money Multipliers ; G18 - Government Policy and Regulation ; G21 - Banks; Other Depository Institutions; Mortgages ; G33 - Bankruptcy; Liquidation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005063361