The great escape? A quantitative evaluation of the Fed's liquidity facilities
We introduce liquidity frictions into an otherwise standard DSGE model with nominal and real rigidities and ask: Can a shock to the liquidity of private paper lead to a collapse in short-term nominal interest rates and a recession like the one associated with the 2008 U.S. financial crisis? Once the...
| Main Authors: | , , , |
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| Format: | Journal article |
| Language: | English |
| Published: |
American Economic Association
2017
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