Money and capital in a persistent liquidity trap
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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