Araújo, Aloísio; Schommer, Susan; Woodford, Michael - In: American Economic Journal: Macroeconomics 7 (2015) 1, pp. 1-43
We consider the effects of central bank purchases of a risky asset as an additional dimension of policy alongside "conventional" interest rate policy in a general-equilibrium model of asset pricing with endogenous collateral constraints. The effects of asset purchases depend on the way that they...