Indexed debt contracts and the financial accelerator

This paper addresses the positive and normative implications of indexing risky debt to observable aggregate conditions. These issues are pursued within the context of the celebrated financial accelerator model of Bernanke, Gertler and Gilchrist (1999). The principal conclusions are that the optimal degree of indexation is significant, and that the business cycle properties of the model are altered under this level of indexation.

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Year of publication:	2011
Authors:	Carlstrom, Charles T ; Fuerst, Timothy S ; Paustian, Matthius
Institutions:	Federal Reserve Bank of Cleveland
Subject:	Indexation (Economics) \| Financial markets

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Extent:	application/pdf
Series:	Working Paper.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 1117
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009292983