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dc.contributor.authorMalmierca Ordoqui, María
dc.date.accessioned2022-09-16T09:00:03Z
dc.date.available2022-09-16T09:00:03Z
dc.date.issued2019
dc.identifier.citationde Blas, Beatriz and Malmierca, María, Financial Frictions and Stabilization Policies (May 14, 2019). Available at SSRN: https://ssrn.com/abstract=3388131es
dc.identifier.urihttp://hdl.handle.net/20.500.12766/382
dc.description.abstractAfter the financial crisis of 2007, in most economies carrying out either fiscal consolidations or counter-cyclical fiscal policies, public and private debt have moved in opposite directions, as opposed to pre-2007 evidence. Private deleverage and public debt build-up may affect the recovery path of countries after a recession. In a new Keynesian model with financial frictions, we show that when the economy is hit by a credit risk shock, the negative correlation that arises between public and private debt amplifies the response of GDP. In our setup, the traditional monetary-fiscal policy mix is not enough to offset this public-private debt mechanism and therefore bring back economic stability. When macroprudential policy is part of the policy mix, the public-private debt channel can be broken. Interestingly, depending on the macroprudential instrument, a trade-off may arise between private debt and output stabilization.es
dc.language.isoenges
dc.publisherSSRNes
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internacional*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.titleFinancial Frictions and Stabilization Policieses
dc.typepreprintes
dc.description.departmentEmpresaes
dc.identifier.doi10.2139/ssrn.3388131
dc.rights.accessRightsopen accesses
dc.subject.areaEconomía Aplicadaes
dc.subject.keywordFinancial acceleratores
dc.subject.keywordAcroprudential policyes
dc.subject.keywordFiscal and monetary policy mixes
dc.subject.keywordPublic and private debtes


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Attribution-NonCommercial-NoDerivatives 4.0 Internacional
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