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levels of outstanding mortgage debt (Dynan, 2012) - seems to be taken for granted by macroprudential authorities in several …-financed overspending through what Muellbauer (2012) calls the "housing-collateral household demand" channel and Mian and Sufi (2018) the … "debt-driven household demand" channel …
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paper investigates the role of demand and supply shocks behind this process. Structural VAR models are specified for the US … and the euro area. Shocks are identified by sign restrictions and external instruments. Demand shocks dominate in the US … inflation due to their adverse effects on demand. However, supply factors are beyond the control of central banks. Thus …
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It is widely acknowledged that the recent generation of DSGE models failed to incorporate many of the liquidity and financial accelerator mechanisms revealed in the global financial crisis that began in 2007. This paper complements the papers presented at the 2009 BIS annual conference focused...
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