Tag Archives: Leverage

Liquidity Trap and Excessive Leverage

From Anton Korinek and Alp Simsek: We investigate the role of macroprudential policies in mitigating liquidity traps driven by deleveraging, using a simple Keynesian model. When constrained agents engage in deleveraging, the interest rate needs to fall to induce unconstrained agents to … Continue reading

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SCF data show ~40% decline in Median Net Worth from 2007-2010

New SCF data came out today, which show dramatic declines in both real incomes and net worth through Great Recession. Median real incomes fell roughly 8 percent. Mean incomes fell by more, likely reflecting capital gains losses from higher income … Continue reading

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