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 …

It is widely believed that seriously excess debt problems form a major cause of the 1997 Asian financial crisis. This … paper investigates empirically the role of the debt problems with respect to both the won/$US rate fluctuations and the won … the predictor of a likely crash in the won rate in late 1997. Excess debt is hence found to only constitute one of the …

This study aims to examine the effectiveness of the debt modification system (DMS) in Korea. We find that DMS does have … a positive effect in increasing the credit scores and annual income of DMS users. We also find that a debt management …-interest unsecured loans from banks. Therefore, DMS in Kores is still insufficient to support the return of debt-ridden consumers to …

In the present paper we explicitly introduce interest payments and debt into a Kaleckian distribution and growth model … the equilibrium debt-capital-ratio are also analysed. It is shown, that the effects of interest variations on the … interest rate and the debt-capital-ratio. If the conditions for short-run "normal" effects of interest rate variations are …

Limited liability debt financing of irreversible investments can affect investment timing through an entrepreneur …'s option value, even after compensating a lender for expected default losses. This non-neutrality of debt arises from an … exogenously given an entrepreneur's use of debt. Intuitively, limited liability lowers downside risk for the entrepreneur by …

Debt can increase economic growth as it allows the households and firms to increase consumption and investment. However …, high reliance on debt adversely affects economy as it can cause debt-deflationary recession, balance sheet recession …

Debt levels have surged since the mid-1990s and have reached historic highs across the OECD. High debt levels can … create vulnerabilities, which amplify and transmit macroeconomic and asset price shocks. Furthermore, high debt levels hinder … shocks. The empirical evidence suggests that when private sector debt levels, particularly for households, rise above trend …

leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals … crisis ; optimal leverage and debt ratios ; Congressional Oversight Panel ; Case-Shiller index …

The recent financial crises pointed out the central role of public and private debt in modern economies. However, even … if debt is a recurring topic in discussions about the current economic situation, economic modelling does not take into … account debt as one of the crucial determinants of economic dynamics. Our contribution, in this paper, is to investigate the …