externalities are an important driver of consumer credit dynamics. Our model economy is populated by two different household types …. Investors, who hold the economy's capital stock, own the firms and supply credit, and workers, who supply labor and demand … credit to finance consumption. Furthermore, workers condition their consumption choice on the investors' level of consumption …

financial variables changes the model dynamics and delivers price responses which are more in line with economic theory. A …

This study investigates the interrelation between the household leverage cycle, collateral constraints, and monetary … fall in economic activity during periods of household deleveraging. In contrast, monetary policy shocks only have … insignificant effects during a household leveraging state. These results are robust to alternative definitions of leveraging and …

social programs, savings and the labor supplies of all adult household members. The optimal policy mix focuses mainly on … Social Assistance, which provides a permanent universal household income floor, with a minor role for temporary earnings …-related Unemployment Insurance. Reflecting that married couples obtain intra-household insurance by making labor supply choices for both …

growth, giving support to Phillips' Golden Triangle theory. -- Employment Growth ; Inflation ; Output Growth ; Golden … Triangle theory …

The paper analyses the empirical relationship between bank risk and sovereign credit risk in the euro area. Using … bailout policies have reduced solvency risk in the banking sector, but partly at the expense of raising the credit risk of … sovereigns. By contrast, monetary policy was in most, but not all cases effective in lowering credit risk among both sovereigns …