Sudden Stops and Optimal Policy in a Two-agent Economy /

We introduce heterogeneity in terms of workers and entrepreneurs in an otherwise standard Fisherian model to study Sudden Stop dynamics and optimal policy. We show that the distinction between workers and entrepreneurs introduces a distributive externality that is absent from the representative-agen...

Full description

Bibliographic Details
Main Author: Biljanovska, Nina
Other Authors: Vardoulakis, Alexandros
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2022.
Series:IMF Working Papers; Working Paper ; No. 2022/147
Subjects:
Online Access:Full text available on IMF