Macro-prudential policy in a Fisherian model of financial innovation / Javier Bianchi, Emine Boz, Enrique G. Mendoza.
The interaction between credit frictions, financial innovation, and a switch from optimistic to pessimistic beliefs played a central role in the 2008 financial crisis. This paper develops a quantitative general equilibrium framework in which this interaction drives the financial amplification mechan...
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