Bergman, U. Michael; Hassan, Shakill - Economic Policy Research Unit (EPRU), Økonomisk Institut - 2008
This paper revisits the currency crises model of Aghion, Bacchetta and Banerjee (2000, 2001, 2004), who show that if there exist nominal price rigidities and private sector credit constraints, and the credit multiplier depends on real interest rates, then the optimal monetary policy response to...
