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When limited commitment hinders unsecured credit, assets help by serving as collateral. We study models where assets …-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise …
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main refinancing and longer-term refinancing operations, the expansion of collateral eligible for use in Eurosystem credit …
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This paper examines the relationship between monetary policy and investor sentiment across conventional and unconventional monetary policy regimes. During conventional times, we find that a surprise increase in the fed funds rate leads to a large drop in investor sentiment that reverses after...
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