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Adam Smith's ideas about the "invisible hand", was a major contribution to an ongoing tradition in monetary theory in whose …
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Adam Smith's ideas about the "invisible hand", was a major contribution to an ongoing tradition in monetary theory in whose …
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We examine how borrowing constraints affect monetary transmission and the trade-off of a welfare maximizing central bank. We develop a sticky price model where money serves as the means of payment and ex-ante identical agents borrow/lend among each other. The credit market is distorted as...
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