Collateral constraints, the zero lower bound, and the debt–deflation mechanism

C-Tier
Journal: Economics Letters
Year: 2019
Volume: 174
Issue: C
Pages: 144-148

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Negative cost-push shocks lead to lower inflation and higher output in normal times. These shocks are instead contractionary when collateral constraints interact with the zero lower bound, as the debt–deflation mechanism plays a key amplifying role. The effects are larger and more persistent when nominal wages cannot be reduced.

Technical Details

RePEc Handle
repec:eee:ecolet:v:174:y:2019:i:c:p:144-148
Journal Field
General
Author Count
2
Added to Database
2026-01-26