How Long to Read Liquidity Trap and Excessive Leverage

How Long Does it Take to Read Liquidity Trap and Excessive Leverage?

It takes the average reader and 50 minutes to read Liquidity Trap and Excessive Leverage by Mr. Anton Korinek

Assuming a reading speed of 250 words per minute. Learn more

Description

We investigate the role of macroprudential policies in mitigating liquidity traps driven by deleveraging, using a simple Keynesian model. When constrained agents engage in deleveraging, the interest rate needs to fall to induce unconstrained agents to pick up the decline in aggregate demand. However, if the fall in the interest rate is limited by the zero lower bound, aggregate demand is insufficient and the economy enters a liquidity trap. In such an environment, agents' exante leverage and insurance decisions are associated with aggregate demand externalities. The competitive equilibrium allocation is constrained inefficient. Welfare can be improved by ex-ante macroprudential policies such as debt limits and mandatory insurance requirements. The size of the required intervention depends on the differences in marginal propensity to consume between borrowers and lenders during the deleveraging episode. In our model, contractionary monetary policy is inferior to macroprudential policy in addressing excessive leverage, and it can even have the unintended consequence of increasing leverage.

How long is Liquidity Trap and Excessive Leverage?

Liquidity Trap and Excessive Leverage by Mr. Anton Korinek is 49 pages long, and a total of 12,691 words.

This makes it 17% the length of the average book. It also has 16% more words than the average book.

How Long Does it Take to Read Liquidity Trap and Excessive Leverage Aloud?

The average oral reading speed is 183 words per minute. This means it takes 1 hour and 9 minutes to read Liquidity Trap and Excessive Leverage aloud.

What Reading Level is Liquidity Trap and Excessive Leverage?

Liquidity Trap and Excessive Leverage is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

Where Can I Buy Liquidity Trap and Excessive Leverage?

Liquidity Trap and Excessive Leverage by Mr. Anton Korinek is sold by several retailers and bookshops. However, Read Time works with Amazon to provide an easier way to purchase books.

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