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Overborrowing, Underborrowing, and Macroprudential Policy

SSRN Electronic Journal, 2023
In this paper, we revisit the scope for macroprudential policy in production economies with pecuniary externalities and collateral constraints. We study competitive equilibria and constrained-efficient equilibria and examine the extent to which the gap between the two depends on the production structure and the policy instruments available to the ...
Fernando Arce   +2 more
openaire   +4 more sources

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