Christiano, Lawrence J.; Gust, Christopher; Roldos, Jorge E. - 2007
What are the economic effects of an interest rate cut when an economy is in the midst of a financial crisis? Under what … effects? We answer these questions in a general class of open economy models, where a financial crisis is modeled as a time … the traded good sector and in adjusting the rate at which that output can be used in other parts of the economy, then a …
