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environmental pollution. The analysis introduces the green interest rate (rg) which depends on temporal changes in the pollution … intensity of output. This policy instrument reallocates consumption from periods when output is pollution intensive to when …
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We analyze the European Central Bank's (ECB's) response to the global financial crisis. Our results suggest that even during the crisis, the core part of ECB's monetary policy transmission-from policy rates to market rates-has continued to operate, but at a decreased efficiency. We also find...
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We build a general equilibrium model with financial frictions that impede monetary policy transmission. Agents with heterogeneous productivity can increase investment by levering up, which increases liquidity risk due to maturity transformation. In equilibrium, more productive agents choose...
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