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Central bank credit has expanded dramatically in some of the euro area member countries since the beginning of the financial crisis. This paper makes two contributions to understand this stylized fact. First, we discuss a simple model of monetary policy that includes (i) a credit channel and...
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correlated with unemployment, but not with inflation in the respective countries. -- tragedy of the commons ; inflation bias …
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. After 2007, it closely follows unemployment in the respective countries. -- tragedy of the commons ; inflation bias ; credit …
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. First, from the national perspective, central banks may be confronted with a classical tragedy-of-the-commons problem, which …
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