Lin, Li; Tsomocos, Dimitrios P.; Vardoulakis, Alexandros - Federal Reserve Board (Board of Governors of the … - 2014
decrease in total output. We show that pre-crisis contractionary monetary policy interacts with Fisherian debt-deflation …This paper assesses the role that monetary policy plays in the decision to default using a General Equilibrium model … of which depends on monetary policy. The decision to default is endogenous and depends on the relative value of the …