This paper compares the equilibrium dynamics of an economy facing an aggregate collateral constraint on external debt … central finding of the paper is that the economy with the aggregate borrowing limit does not generate higher levels of debt …

investment, debt usage, and firm value. During the 1930-1938 Depression era, when the corporate sector was shocked by an …) and use more debt during the 1930s. We document similar effects for the number of outside directors on the board. Finally …

and borrowers ample reason to care whether nonperforming debts are restructured. One implication of the way in which debt … argument is moral hazard, but (unlike in much of the recent literature of emerging market debt problems) what is central here …

Government guarantees of private debt deplete equity. The depletion is greatest during periods when the probability of … debt up to the limit the government permits. Declines in asset values raise debt in relation to asset values and thus … asset values to market. Less widely recognized is that guaranteed debt creates an incentive to pay equity out to owners …

This paper documents a number of key facts about the evolution of mortgage debt, homeownership, debt burden and … the entire income distribution, i.e. the flow and stock of debt rose across all income groups (except for the top 5%). The … the run up in mortgage debt over the pre-crisis period was driven by rising home values and expectations of increasing …

This paper studies optimal monetary policy under dynamic debt deleveraging once the zero bound is binding. Unlike the …