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Debt-deflation: concepts and a stylised model Author info | Abstract | Publisher info | Download info | Related research | Statistics Goetz von Peter
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This paper proposes a model of how agents adjust their asset holdings in response to losses in general equilibrium. By emphasising the relation between deflation and financial distress, we capture some original features of the early debt-deflation literature, such as distress selling, instability, and endogenous monetary contraction.
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Paper provided by Bank for International Settlements in its series BIS Working Papers with number
176.
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Length: 56 pages
Date of creation: Apr 2005Date of revision:
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Keywords: Asset Prices ; Inside Money ; Debt-Deflation ; Leverage ; Refinancing ; Losses ; Financial Distress ; Distress Selling ; Credit ; Other versions of this item:
Find related papers by JEL classification: E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
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