The remarkable increase in the real rate of interest all over the world and the appreciation of the dollar real exchange rate, toghether with the large fiscal stimulus from President Reagan's program has brought government deficits and their effects on the economy back to the foreground of the...

This paper constructs a simple general equilibrium model to analyse the interactions between the financial and the real sector in an environment where liquidity holdings is an input of the credit/investment process. The supply of liquidity is constrained in that income pledgeability limits...

ecuritization performs two functions. One refers to the risk allocation between the bank and outside investors; the other consists of creating transferable/liquid securities. A key ingredient of liquid/claimtransferability is bankruptcy remoteness - the insolvency of the sponsor (the loan...

This paper develops a theoretical model as a foundation of empirical analysis of the transmission channel of non-performing loans (NPLs) on bank cost of capital, credit and liquidity creation in the Eurozone. Empirical results confirm the model's predictions and suggest that holding...

The analysis of external shocks of real nature, such as the oil shock, requires an intertemporal framework to properly investigate through saving and investment decision the outcome of the balance of trade. By now there are quite few works replying on such an approach, M. Obstfeld (1980), J....