Isohätälä, Jukka; Kusmartsev, Feo; Milne, Alistair; … - Suomen Pankki - 2014
This paper investigates the macroconomics of real interest rates when there are constraints on debt finance, used both for insurance against income shocks and transferability of resources over time. We amend a standard continuous-time deterministic model of international exchange, with patient...