Title of article
Credit frictionsandthecomovementbetweendurableand non-durableconsumption
Author/Authors
Vincent Sterk، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2010
Pages
9
From page
217
To page
225
Abstract
Frictionsinlendingbetweenhouseholdshavebeenproposedasasolutiontothe
difficultiesnew-Keynesianmodelshaveinpredictingadeclineinbothdurableandnon-
durable consumptionfollowingamonetarytightening.Byrevisitingastandardnew-
Keynesianframeworkwithcollateralconstraints,itisshownthatthepresenceofsuch
creditfrictionsinfactmakesit more difficulttogeneratethejointdecline.Theintuitive
reasonsbehindthisresultareprovided,whichshouldbehelpfulindevelopingmodels
that aremoresuccessfulingeneratingapositivecomovementbetweendurablesand
non-durables
Keywords
New-Keynesian modelsFinancial frictionsGeneral equilibrium
Journal title
Journal of Monetary Economics
Serial Year
2010
Journal title
Journal of Monetary Economics
Record number
846386
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