Airaudo, Marco; Olivero, Maria Pia - LeBow College of Business, Drexel University - 2014
Ramsey plan) and of using simpler sub-optimal policy rules are strictly increasing in the magnitude of deep habits in credit … lending rates in a forward-looking fashion as they internalize the fact that, due to borrowers. bank-specific (hence deep …) habits, current interest rates also affect the future demand for loans by financially constrained. In particular, during a …