|
|
|
|
| LEADER |
01915cas a2200253 a 4500 |
| 001 |
AALejournalIMF006524 |
| 008 |
230101c9999 xx r poo 0 0eng d |
| 020 |
|
|
|c 5.00 USD
|
| 020 |
|
|
|z 9781455201242
|
| 022 |
|
|
|a 1018-5941
|
| 040 |
|
|
|a BD-DhAAL
|c BD-DhAAL
|
| 100 |
1 |
|
|a Choi, Woon.
|
| 245 |
1 |
0 |
|a Fire Sales and the Financial Accelerator /
|c Woon Choi, David Cook.
|
| 264 |
|
1 |
|a Washington, D.C. :
|b International Monetary Fund,
|c 2010.
|
| 300 |
|
|
|a 1 online resource (29 pages)
|
| 490 |
1 |
|
|a IMF Working Papers
|
| 500 |
|
|
|a <strong>Off-Campus Access:</strong> No User ID or Password Required
|
| 500 |
|
|
|a <strong>On-Campus Access:</strong> No User ID or Password Required
|
| 506 |
|
|
|a Electronic access restricted to authorized BRAC University faculty, staff and students
|
| 520 |
3 |
|
|a During periods of financial turmoil, increases in risk lead to higher default, foreclosure, and fire sales. This paper introduces a costly liquidation process for foreclosed collateral and endogenous recovery rates in a dynamic stochastic general equilibrium model of the financial accelerator. Consistent with empirical evidence, we find that recovery rates are pro-cyclical when collateral is costly to liquidate. Through links between recovery rates, risk premia, and default risk, the model generates an additional liquidity spiral, a feedback loop for the financial accelerator. We illustrate how collateral liquidation and monetary policy alter the impacts of a financial shock. We also show that a government subsidy on collateral liquidity and the endogenous accumulation of liquidity inventory help dampen the liquidity spiral by shoring up recovery rates.
|
| 538 |
|
|
|a Mode of access: Internet
|
| 700 |
1 |
|
|a Cook, David.
|
| 830 |
|
0 |
|a IMF Working Papers; Working Paper ;
|v No. 2010/141
|
| 856 |
4 |
0 |
|z Full text available on IMF
|u http://elibrary.imf.org/view/journals/001/2010/141/001.2010.issue-141-en.xml
|z IMF e-Library
|