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We examine the dynamics of a country's growth, consumption, and sovereign debt, assuming that the government is myopic … in a "growth boost", with higher steady-state household consumption than if it could not borrow. However, in a country … "growth trap" where household steady-state consumption is lower than if the government had no access to debt. We discuss the …
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Over the past two decades, banks have increasingly focused on offering contingent credit in the form of credit lines as a primary means of corporate borrowing. We review the existing body of research regarding the rationales for banks' provision of liquidity insurance in the form of credit...
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