We provide a review of macro-finance models featuring nonlinear dynamics. We survey the models developed recently in the literature, including models with amplification effects of financial constraints, models with households' leverage constraints, and models with financial networks. We also...

Section 1 describes the model in greater details. Section 2 displays a benchmark model without intermediary frictions and compare the decentralized frictionless model with the social planner’s problem. Section 3 briefly introduces the various numerical solution methods we use to solve the...