Chi, Chun-che; Schmitt-Grohé, Stephanie; Uribe, Martín - National Bureau of Economic Research - 2021
This paper studies optimal capital-control and bank-reserve remuneration policy in an open economy with a banking … channel and a collateral constraint that limits household debt by a fraction of income. It finds that the unregulated economy …. In this way, the monetary authority is able to uncouple household deleveraging from economy-wide deleveraging, thereby …