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This paper develops a two-country monetary DSGE model in which households choose a portfolio of home and foreign …
Persistent link: https://www.econbiz.de/10012761579
This paper develops a two-country monetary DSGE model in which households choose a portfolio of home and foreign …
Persistent link: https://www.econbiz.de/10012466454
Investors who arbitrage between long term government debt and corporate debt expand the Portfolio Balance Channel in that the effects of QE spill over to the overall cost of corporate borrowing. I find that overall the Federal Reserve's second round of Large-Scale Asset Purchases (LSAPII) boosts...
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