Abo Zaid, Salem M. - 2011
uncertainty in the economy. The shadow value on the collateral constraint is akin to an endogenous cost-push shock. Differently … from usual cost-push shocks, however, this shock is asymmetric as it takes non-negative values only. Inflation is positive … cost-push shock is positive, inflation is also positive on average. In addition, a binding collateral constraint resembles …