What's happening in monetary policy and macroeconomics.
Saturday, November 20, 2010
More on Leverage, Debt Constraints, and Asset Prices
Given some of the issues raised in the Eggertsson-Krugman paper, a useful reference point is the paper Kocherlakota gave at the Jekyll Island conference. Kocherlakota's paper gives us some detail on the fundamental determinants of debt constraints and how they relate to the financial crisis. Check out his reference list, which is particularly useful.