首页 | 本学科首页   官方微博 | 高级检索  
     


Outside versus inside bonds: A Modigliani–Miller type result for liquidity constrained economies
Authors:Aleksander Berentsen  Christopher Waller
Affiliation:aUniversity of Basel, Switzerland;bFederal Reserve Bank of St. Louis, United States;cUniversity of Notre Dame, United States
Abstract:When agents are liquidity constrained, two options exist – sell assets or borrow. We compare the allocations arising in two economies: in one, agents can sell government (outside) bonds and in the other they can borrow by issuing (inside) bonds. All transactions are voluntary, implying no taxation or forced redemption of private debt. We show that any allocation in the economy with inside bonds can be replicated in the economy with outside bonds but that the converse is not true. However, the optimal policy in each economy makes the allocations equivalent.
Keywords:JEL classification: E4   E5
本文献已被 ScienceDirect 等数据库收录!
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号