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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/10012833129
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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