Fiscal Buffers, Private Debt, and Stagnation : The Good, the Bad and the Ugly /

We revisit the empirical relationship between private/public debt and output, and build a model that reproduces it. In the model, the government provides financial assistance to credit-constrained agents to mitigate deleveraging. As we observe in the data, surges in private debt are potentially more...

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Xehetasun bibliografikoak
Egile nagusia: Batini, Nicoletta
Beste egile batzuk: Melina, Giovanni, Villa, Stefania
Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2016.
Saila:IMF Working Papers; Working Paper ; No. 2016/104
Sarrera elektronikoa:Full text available on IMF
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100 1 |a Batini, Nicoletta. 
245 1 0 |a Fiscal Buffers, Private Debt, and Stagnation :   |b The Good, the Bad and the Ugly /  |c Nicoletta Batini, Giovanni Melina, Stefania Villa. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2016. 
300 |a 1 online resource (41 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 We revisit the empirical relationship between private/public debt and output, and build a model that reproduces it. In the model, the government provides financial assistance to credit-constrained agents to mitigate deleveraging. As we observe in the data, surges in private debt are potentially more damaging for the economy than surges in public debt. The model suggests two policy implications. First, capping leverage leads to milder recessions, but also implies more muted expansions. Second, with fiscal buffers, financial assistance to credit-constrained agents helps avoid stagnation. The growth returns from intervention decline as the government approaches the fiscal limit. 
538 |a Mode of access: Internet 
700 1 |a Melina, Giovanni. 
700 1 |a Villa, Stefania. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2016/104 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2016/104/001.2016.issue-104-en.xml  |z IMF e-Library