Optimal public debt management and liquidity provision /
We study the Ramsey policy problem in an economy in which firms face a collateral constraint. Issuing more public debt alleviates this friction by increasing the aggregate quantity of collateral. In so doing, however, the issuance of more debt also raises interest rates, which in turn increases the...
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Bibliographic Details
Corporate Author: |
Massachusetts Institute of Technology Department of Economics |
Other Authors: |
Angeletos, Marios,
Collard, Fabrice,
Dellas, Harris, 1958-,
Diba, Behzad |
Format: | Book
|
Language: | English |
Published: |
Cambridge, MA :
Massachusetts Institute of Technology, Dept. of Economics,
[2012]
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Series: | Working paper (Massachusetts Institute of Technology. Department of Economics) ;
no. 13-02
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Subjects: |
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