economy and brings down asset prices, risk-tolerant agents' wealth share declines and their leverage rises endogenously. This … reduces the market's risk tolerance and generates downward pressure on asset prices and aggregate demand. When monetary policy … improve asset prices and aggregate demand by transferring risk to the government's balance sheet, which reduces the market …

We study a production economy with multiple sectors financed by issuing securities to agents who face capital … tool, we study the introduction of the legacy Term Asset-Backed Securities Loan Facility (TALF). By considering … unpredictable rejections of bonds from TALF, we estimate that haircuts had a significant effect on prices. Further, unique survey …

bonds did temporarily suppress currency depreciation. These acts also triggered upsurges in commodity prices, however, as …