Buera, Francisco J. and Nicolini, Juan Pablo <br/><br/>
Liquidity Traps and Monetary Policy: Managing a Credit Crunch 

 - American Economic Journal Macroeconomic   
 - 12(3), Jul, 2020: p.110-138 
<br/><br/> We study a model with heterogeneous producers that face collateral and cash-in-advance constraints. A tightening of the collateral constraint results in a credit-crunch-generated recession that reproduces some features of the financial crisis that unraveled in 2007 in the United States. We use the model to study the effects, following a credit crunch, of alternative monetary and fiscal policies. – Reproduced