nominal interest rate), in a general-equilibrium model of asset pricing and risk sharing with endogenous collateral … constraints of the kind proposed by Geanakoplos (1997). The existence of collateral constraints allows our model to capture the …-bank purchases raise the price of the asset, owing to binding collateral constraints, the effects need not be the ones commonly …

collateral constraints, and uses the model to study unconventional policies such as credit facilities and foreign exchange …

Typical models of bankruptcy and collateral rely on incomplete asset markets. In fact, bankruptcy and collateral add … and Levine (2001) can be implemented in a model with bankruptcy and collateral. The equilibrium allocation is constrained … a model with bankruptcy and collateral is fragile in the sense of Leijonhufvud's "corridor of stability," however: If …

. Private debt reflects equilibrium trade between an impatient borrower, who faces an endogenous collateral constraint, and a … borrower's collateral constraint. We find that the optimal volatility of inflation is increasing in three key parameters: (i …

agents are willing to lend without producing costly information about the collateral backing the debt. When the economy … relies on such informationally-insensitive debt, firms with low quality collateral can borrow, generating a credit boom and …. A crisis occurs when a small shock then causes a large change in the information environment. Agents suddenly have …

financing. This paper shows that the quantitative predictions of a business cycle model with collateral constraints are … productivity trigger collateral constraints on debt and working capital when borrowing levels are high relative to asset values … causes Sudden Stops as the deflation of Tobin's Q leads to a spiraling decline in the prices and holdings of collateral …

This paper characterizes analytically the adjustment of an open economy with a stock collateral constraint to … current account balances, and no significant movement in the price of collateral. By contrast, in response to large negative … expectations about the value of collateral …

We document how a plant-specific shock to investment opportunities at one plant of a firm ("treated plant") spills over … to other plants of the same firm--but only if the firm is financially constrained. While the shock triggers an increase …