This p aper explores the interaction between a credit crunch and the maturity of government debt, focusing on its impacts on an economy with heterogeneous house holds. We find that an increase in debt maturity helps softening the economicslump that follows a credit crisis. We show that,...

This paper explores the interaction between a credit crunch and the maturity of government debt, focusing on its impacts on an economy with heterogeneous households. We find that an increase in debt maturity helps softening the economic slump that follows a credit crisis. We show that,...