Jappelli, Ruggero; Pelizzon, Loriana; Subrahmanyam, Marti G. - 2023
We develop a quantity-driven general equilibrium model that integrates the term structure of interest rates with the repurchase agreements (repo) market to shed light on the combined effects of quantitative easing (QE) on the bond and money markets. We characterize in closed form the endogenous...