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A simple measure of Fisherian amplification with flow collateral constraints

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  • Rojas, Eugenio
  • Saffie, Felipe

Abstract

We derive a closed-form expression for Fisherian amplification in small open economies. The formula isolates nonlinear feedback from price-sensitive collateral and highlights when macroprudential concerns become relevant due to amplification driven by collateral tightness and substitution elasticity.

Suggested Citation

  • Rojas, Eugenio & Saffie, Felipe, 2025. "A simple measure of Fisherian amplification with flow collateral constraints," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003593
    DOI: 10.1016/j.econlet.2025.112522
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    References listed on IDEAS

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    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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