Einarsson, Tor; Marquis, Milton H. - Federal Reserve Bank of San Francisco - 2000
makers to induce a “liquidity effect”, or a persistent decline in short-term nominal interest rates, that stimulates real … households, and bank loans are the only source of working capital finance available to firms. To obtain a liquidity effect in … households to firms, and examines the information friction that could induce liquidity effects and countercyclicality in the …