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lending arrangements. If the collateral constraint binds, agents price in a liquidity premium on bonds that lowers the real … or spending. The price dynamics are driven solely by the liquidity premium on the debt …
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This working paper examines recent trends in EU corporate demography and the role of policy responses during the COVID crisis. It compares recent bankruptcy and business creation rates to past trends. Pre-crisis trends were showing declining business creations and rising bankruptcies. After...
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