Sudden Stops, Financial Crises, and Leverage

被引:418
作者
Mendoza, Enrique G. [1 ]
机构
[1] Univ Maryland, Dept Econ, College Pk, MD 20742 USA
关键词
DEBT-DEFLATION THEORY; REAL EXCHANGE-RATE; BUSINESS CYCLES; REVERSALS; CREDIT;
D O I
10.1257/aer.100.5.1941
中图分类号
F [经济];
学科分类号
02 ;
摘要
Financial crashes were followed by deep recessions in the Sudden Stops of emerging economies. An equilibrium business cycle model with a collateral constraint explains this phenomenon as a result of the amplification and asymmetry that the constraint induces in the responses of macro-aggregates to shocks. Leverage rises during expansions, and when it rises enough it triggers the constraint, causing a Fisherian deflation that reduces credit and the price and quantity of collateral assets. Output and factor allocations fall because access to working capital financing is also reduced. Precautionary saving makes Sudden Stops low probability events nested within normal cycles, as observed in the data. (JEL E21, E23, E32, E44, G01, O11, O16)
引用
收藏
页码:1941 / 1966
页数:26
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