the determinants of household debt holding and to investigate whether or not credit constraints are important for … settings for debt incidence, debt outstanding and credit constraints. We also explore the implications for debt holding from …

interest margins (NIM). At estimated credit supply elasticities, the Phillips curve is very flat at the ZLBD, because … inflationary pressures increase NIM. This strongly increases credit and thereby output, but it dampens inflation by relaxing price … setters' credit rationing constraint. At the ZLBD, monetary policy has far larger effects on output relative to inflation, and …