HIGHLIGHTS
- who: Loenser et al. from the University of Cologne, Germany have published the research work: MONETARY POLICY, FINANCIAL CONSTRAINTS, AND REDISTRIBUTION, in the Journal: (JOURNAL)
- what: The authors explore a novel mechanism of nonneutrality which based on debt limits imposed in nominal terms. The authors show analytically that borrowers can benefit from increased debt limits under lower inflation rates. novel effect can dominate conventional debt deflation effects. The authors examine a novel channel of transmission via financial constraints expressed in nominal terms.3 Thereby exerts redistributive effects which complements other recently studied general equilibrium effects . . .
If you want to have access to all the content you need to log in!
Thanks :)
If you don't have an account, you can create one here.