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The covid-19 crisis has led to a sharp deterioration in firm and bank balance sheets. The government has responded with a massive intervention in corporate credit markets. We study equilibrium dynamics of macroeconomic quantities and prices, and how they are affected by government policy. The...
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The covid-19 crisis has led to a sharp deterioration in firm and bank balance sheets. The government has responded with a massive intervention in corporate credit markets. We study equilibrium dynamics of macroeconomic quantities and prices, and how they are affected by government policy. The...
Persistent link: https://www.econbiz.de/10012835030
is 4% for bailout firms and 16% for no-bailout firms. The bailouts are expensive when compared to past corporate income … tax payments of the bailout firms. We compute the number of years a bailout recipient has to pay corporate income tax to …. Numerous bailout recipients made risky financial decisions, so bailing them out might induce moral hazard. Moreover, lobbying …
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Governments around the world are attempting to support individuals' incomes, rescue distressed businesses, and preserve employer-employee relationships damaged in the coronavirus pandemic by adopting fiscal stimulus programs of unprecedented scale. Although the bulk of this spending will involve...
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A wide range of approaches has been applied to address banking and other financial crises. The nature of the approach depends on the nature of the crisis, its origins, evolution and context. Systemic banking crises are among the most common and costly to address. The experiences of the three...
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