Default and determinacy under quantitative easing
We show that the path of inflation under quantitative easing policies that target interest rates, is determinate in the presence of default. We achieve this through different payoff profiles that a collateralised defaultable bond achieves in different states of nature with distinct default outcomes....
| Main Authors: | , |
|---|---|
| Format: | Journal article |
| Language: | English |
| Published: |
Springer
2021
|