Broner, Fernando; Erce, Aitor; Martin, Alberto; … - In: Journal of Monetary Economics 61 (2014) C, pp. 114-142
markets. The model has two key ingredients: creditor discrimination and crowding-out effects. Creditor discrimination arises … provides incentives for domestic purchases of debt. Crowding-out effects arise because private borrowing is limited by … purchases reduce growth and welfare, and may lead to self-fulfilling crises. It also shows how crowding-out effects can be …