Agénor, Pierre-Richard; Bratsiotis, George; Pfajfar, Damjan - 2014 - This version: June 1, 2012
This paper examines the behavior of the finance premium after technology and monetary shocks in a dynamic stochastic general equilibrium (DSGE) model where borrowers use a fraction of their production (output) as collateral. We show that this simple framework is capable of producing a...