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How much does inequality matter for the business cycle and vice versa? Using a Bayesian likelihood approach, we estimate a heterogeneous-agent New-Keynesian (HANK) model with incomplete markets and portfolio choice between liquid and illiquid assets. The model enlarges the set of shocks and...
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order to escape the current combination of liquidity trap and credit crunch. It shortly discusses reasons for this measure …. -- Financial crisis ; monetary policy ; liquidity trap ; credit crunch ; asset markets …
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