Title of article :
Credit frictionsandthecomovementbetweendurableand
non-durableconsumption
Author/Authors :
Vincent Sterk، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2010
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
Journal title :
Journal of Monetary Economics
