题 目：Debt Deflation Effects of Monetary Policy

报告人：Li Lin, University of Oxford

时 间：2013年1月17日（周四）13:30-15:00

地 点：成人直播新楼217室

Abstract: This paper assesses the role that monetary policy plays in the decision to default using a General Equilibrium model with collateralized loans, trade in fiat money and production. Long-term loans are backed by collateral, the value of which depends on monetary policy. The decision to default is endogenous and depends on the relative value of the collateral to the loan. Default results in foreclosure, higher borrowing costs, inefficient investment and a decrease in total output. We focus on monetary shocks and assess thedefaultchannel affecting output using the intuition from Fisher's debt deflation theory.