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A financial accelerator through coordination failure
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dc.contributor.author | de Groot, Oliver | |
dc.date.accessioned | 2019-03-01T15:30:07Z | |
dc.date.available | 2019-03-01T15:30:07Z | |
dc.date.issued | 2019-01-31 | |
dc.identifier.citation | de Groot , O 2019 ' A financial accelerator through coordination failure ' School of Economics and Finance Discussion Papers , no. 1902 , University of St Andrews , St Andrews . | en |
dc.identifier.issn | 0962-4031 | |
dc.identifier.other | PURE: 257950849 | |
dc.identifier.other | PURE UUID: 04c8f417-186f-4efc-b9db-06bcff16e474 | |
dc.identifier.uri | https://hdl.handle.net/10023/17191 | |
dc.description.abstract | This paper studies the effect of liquidity crises in short-term debt markets in a dynamic general equilibrium framework. Creditors (retail banks) receive imperfect signals regarding the profitability of borrowers (wholesale banks) and, based on these signals and their beliefs about other creditors actions, choose whether to rollover funding, or not. The uncoordinated actions of creditors cause a suboptimal incidence of rollover, generating an illiquidity premium. Leverage magnifies the coordination inefficiency. Illiquidity shocks in credit markets result in sharp contractions in output. Policy responses are analyzed. | |
dc.format.extent | 52 | |
dc.language.iso | eng | |
dc.publisher | University of St Andrews | |
dc.relation.ispartofseries | School of Economics and Finance Discussion Papers | en |
dc.rights | Copyright (c)2019 the author | en |
dc.subject | Financial frictions | en |
dc.subject | DSGE models | en |
dc.subject | Global games | en |
dc.subject | Bank runs | en |
dc.subject | Unconventional monetary policy | en |
dc.subject | Financial crises | en |
dc.subject | HG Finance | en |
dc.subject | BDC | en |
dc.subject | R2D | en |
dc.subject.lcc | HG | en |
dc.title | A financial accelerator through coordination failure | en |
dc.type | Working or discussion paper | en |
dc.description.version | Publisher PDF | en |
dc.contributor.institution | University of St Andrews. School of Economics and Finance | en |
dc.identifier.url | https://ideas.repec.org/p/san/wpecon/1902.html | en |
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