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Using detailed micro data, we document that households often use "stimulus" checks to pay down debt, especially those … otherwise standard incomplete markets model. Because interest rates rise with debt, borrowers have increasingly larger … incentives to use an additional dollar to reduce debt service payments rather than consume. Using our calibrated model, we then …
Persistent link: https://www.econbiz.de/10015189308
Did the city-states of Genoa and Venice kick a financial revolution all the way back in the Quattrocento, much sooner than the financial revolutions of the Netherlands, England and America? To answer this question we analyze the classic revolutions in terms of three key criteria: credibility of...
Persistent link: https://www.econbiz.de/10013370029
In several publications, starting more than a decade ago, Peter Flaschel and co-authors have outlined the features of a 'social capitalism' as a normative alternative to the liberal and financialised capitalism of the Anglo-Saxon type, but also to the undemocratic Chinese-type of state...
Persistent link: https://www.econbiz.de/10013412266
perspective. This is shown by means of examining the effect of increasing capital accumulation on the debt-capital ratio of the … accumulation may be associated with a falling (rising) debt-capital ratio for the economy as a whole and hence with the 'paradox of … debt'. Therefore, the treatment of the rate of interest as an exogenous macroeconomic distribution parameter in Post …
Persistent link: https://www.econbiz.de/10010309126
Money, which provides liquidity, is distinct from debt. The introduction of a bank that issues money in exchange for … debt and pays out its profit as dividend to shareholders modifies the model of overlapping generations. Monetary policy can …
Persistent link: https://www.econbiz.de/10010318857
also addressing, albeit in a limited way, the larger political issue of the nation's debt and deficit along with the …
Persistent link: https://www.econbiz.de/10014581826
debt deflation and prolonged recession. Financialization operates through three different conduits: changes in the …
Persistent link: https://www.econbiz.de/10010266625
motive for expectation management that aims towards the manipulation of equilibrium prices of government debt in a favorable …
Persistent link: https://www.econbiz.de/10010292256
We examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where …
Persistent link: https://www.econbiz.de/10010292363
This paper surveys the recent literature on fiscal sustainability, with particular emphasis on emerging market countries. It discusses the main elements that differentiate emerging market countries from industrial countries and then discusses how probabilistic models can help to evaluate fiscal...
Persistent link: https://www.econbiz.de/10010327194