1 option
The Great Escape? A Quantitative Evaluation of the Fed's Liquidity Facilities / Marco Del Negro, Gauti Eggertsson, Andrea Ferrero, Nobuhiro Kiyotaki.
- Format:
- Book
- Author/Creator:
- Del Negro, Marco.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w22259.
- NBER working paper series no. w22259
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2016.
- Summary:
- We introduce liquidity frictions into an otherwise standard DSGE model with nominal and real rigidities and ask: Can a shock to the liquidity of private paper lead to a collapse in short-term nominal interest rates and a recession like the one associated with the 2008 U.S. financial crisis? Once the nominal interest rate reaches the zero bound, what are the effects of interventions in which the government provides liquidity in exchange for illiquid private paper? We find that the effects of the liquidity shock can be large, and show some numerical examples in which the liquidity facilities prevented a repeat of the Great Depression in 2008-2009.
- Notes:
- Print version record
- May 2016.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.