Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo Approach*

By Gauti B. Eggertsson, Paul Krugman. 2012

1,454 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/9dd78500b1f5b965828460180b980cd34a5437d8

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In Economics and Econometrics

Citations in the corpus

Predictable Financial Crises (2020, methodology): “In this way, the Kindleberger-Minsky view provides a foundation for the “credit supply shocks” often used as a starting point for modeling economic busts (Hall (2011), Eggertsson and Krugman (2012), Korinek and Simsek (2016), Guerrieri and Lorenzoni (2017), and Bordalo et al. (2021)).”
Rising inequality as a cause of the present crisis (2015, background): “empirical evidence for these different growth regimes, also distinguishing two intermediate cases (Hein and Mundt, 2012). The centre of Hein’s analysis is the effects of financialisation rather than income distribution. Horn and van Treeck (2011) offer a very similar but less in-depth analysis. Pall”
The Safety Trap (2017, background): “Since the policy leaves the supply of safe assets unchanged, it does not expand output, which remains depressed by exactly the same factor ξ.(15) A safety trap is addressed more directly by committing to provide support during bad rather than good times, as would be the case of a commitment to lower”
What Explains the 2007-2009 Drop in Employment?: The 2007-2009 Drop in Employment (2014, positive): “In particular, Daly, Hobijn, and Lucking (2012); Daly, Hobijn, and Wiles (2011); Fallick, Lettau, and Wascher (2011); and Hall (2011).”
Trilemmas and trade-offs: living with financial globalisation (2015, background): “On long-term cycles in capital flows, see Bacha and Díaz-Alejandro (1982), Eichengreen (1991) and Obstfeld and Taylor (2004). Of course, the pattern of net capital flows remains puzzling, as discussed by Prasad et al (2007) and Gourinchas and Jeanne (2013).”
Household Debt and the Dynamic Effects of Income Tax Changes (2017, background): “This is consistent with a framework where the decision to purchase a large durable good through borrowing makes some households ‘wealthy’ hand-to-mouth, as in the consumption model with transaction costs on accessing illiquid wealth by Kaplan and Violante (2013).(2) Our results are also of interest ”
Cecchetti , Mohanty and Zampolli The real effects of debt The real effects of debt (2011, positive): “…the public sector should borrow to fill the spending gap left by private sector borrowers as the latter repair their balance sheets.13 But, while the argument put forward by Eggertson and Krugman (2011) is correct in principle, even the capacity of the public sector to borrow is not unlimited.”
Liquidity versus Wealth in Household Debt Obligations: Evidence from Housing Policy in the Great Recession (2020, background): “This matches the caps for cash-out refinancing from Fannie Mae and Freddie Mac, as well as evidence from Corelogic (2016) that average CLTVs on new HELOC originations fell 20 points from their peak in 2004 when CLTVs of 100 were possible. In our baseline model we set real annual house price growth g”