Tag Archives: macroprudential policy

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

Posted in Uncategorized | Tagged , , , , , , , , | Leave a comment