Showing 1 - 10 of 509,739
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
Persistent link: https://www.econbiz.de/10013347577
Persistent link: https://www.econbiz.de/10013347580
Persistent link: https://www.econbiz.de/10013347587
Persistent link: https://www.econbiz.de/10013347590
Persistent link: https://www.econbiz.de/10012321316
Persistent link: https://www.econbiz.de/10012216516
borrowers misprice the option to default with a U-shaped negative pricing error. The myopia discount changes the optimal bailout … policy. Myopia gets punished when the distortions from default mispricing outweigh the future bailout costs, resulting in … procrastinated default and protracted crises. The model shows that (i) myopia is an important determinant for bailout policy, (ii …
Persistent link: https://www.econbiz.de/10012487611
Persistent link: https://www.econbiz.de/10012436611