Arbeitspapier/Forschungsbericht

Jahr der Veröffentlichung: 2010

DOI Link: https://doi.org/10.2139/ssrn.1544180

Abstract: 

This paper employs a New Keynesian model in which the central bank formulates a robust control approach to policy and firms hold working capital. We model credit market distortions in terms of a worst-case interest rate spread. The degree of policy aggressiveness increases in the size of the working capital channel. With a larger working capital channel in the U.S. than in the Euro area, the Fed should set interest rates more vigorously than the ECB.

Harvard-Zitierstil: Tillmann, P. (2010) Credit Market Distortions and Policy Aggressiveness: The Fed vs. the ECB. https://doi.org/10.2139/ssrn.1544180

APA-Zitierstil: Tillmann, P. (2010). Credit Market Distortions and Policy Aggressiveness: The Fed vs. the ECB. https://doi.org/10.2139/ssrn.1544180