Browsing MIT Dept. of Economics Working Papers Series by Subject "financial frictions"

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    • Optimal Public Debt Management and Liquidity Provision 

      Angeletos, George-Marios; Collard, Fabrice; Dellas, Harris; Diba, Behzad (Cambridge, MA: Department of Economics, Massachusetts Institute of Technology, 2013-02-05)
      We study the Ramsey policy problem in an economy in which firms face a collateral constraint. Issuing more public debt alleviates this friction by increasing the aggregate quantity of collateral. In so doing, however, the ...