LAUSR

Optimal debt management in a liquidity trap

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1 Published in 2018 at "Journal of Economic Dynamics and Control"

DOI: 10.1016/j.jedc.2018.01.033

Abstract: We study optimal debt management in the face of shocks that can precipitate the economy into a liquidity trap and call for an increase in public spending in order to mitigate the resulting recession. Our… read more here.

Keywords: liquidity trap; debt management; optimal debt; debt ... See more keywords

Exchange rate regimes in a liquidity trap

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1 Published in 2019 at "Journal of International Money and Finance"

DOI: 10.1016/j.jimonfin.2018.12.014

Abstract: Abstract Using several specifications of a two-sector two-country DSGE model, this paper studies the performance of alternative exchange rate regimes in a liquidity trap caused by a large deflationary shock that pushes the nominal interest… read more here.

Keywords: regimes liquidity; liquidity trap; rate; exchange rate ... See more keywords

Money and capital in a persistent liquidity trap

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1 Published in 2020 at "Journal of Monetary Economics"

DOI: 10.1016/j.jmoneco.2019.09.005

Abstract: Abstract Using a monetary model with asset scarcity, we show that a liquidity trap caused by a persistent deleveraging shock increases real cash holdings and decreases investment and output in the medium term. This medium-term… read more here.

Keywords: capital persistent; money capital; asset scarcity; liquidity trap ... See more keywords

Coping with deflation and the liquidity trap in the eurozone: A post Keynesian approach

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1 Published in 2018 at "Journal of Post Keynesian Economics"

DOI: 10.1080/01603477.2017.1387498

Abstract: ABSTRACT The ghost of deflation is once again one of the main worries of policymakers. Recently deflation is indeed characterizing the eurozone. The renewed concern about deflation is due in part to the historical association… read more here.

Keywords: eurozone; liquidity trap; post keynesian; post ... See more keywords

A Note on Krugman’s Liquidity Trap and Monetary Policy at the Zero Lower Bound

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1 Published in 2020 at "Review of Political Economy"

DOI: 10.1080/09538259.2020.1731119

Abstract: ABSTRACT Krugman's ‘liquidity trap’ model constituted a ground-breaking contribution by attributing the long-lasting Japanese stagnation to a negative natural interest rate. Our critique to such a proposal will focus on three aspects. First, we will… read more here.

Keywords: policy; krugman liquidity; liquidity trap; note krugman ... See more keywords