Arbeitspapier
Coordination Frictions and The Financial Crisis
In this note I argue that the desirability of fiscal policy in response to the current crisis depends on whether one views the current crisis as a temporary deviation from a unique equilibrium or as a bad equilibrium out of multiple equilibria. The paper presents a simple Diamond (1982) type of model where firms must find an (investment) bank to finance their projects and the investment banks sell risky assets to get capital from investors. Due to coordination frictions, the economy can get stuck in an inefficient low-trade equilibrium. Finally, I briefly discuss some of the policies that have recently been put forward to stimulate the economy in the context of this model.
- Sprache
-
Englisch
- Erschienen in
-
Series: Tinbergen Institute Discussion Paper ; No. 09-028/3
- Klassifikation
-
Wirtschaft
Financial Markets and the Macroeconomy
Fiscal Policy
Unemployment: Models, Duration, Incidence, and Job Search
- Thema
-
financial crisis
coordination frictions
macroeconomic complementarities
search frictions
Finanzkrise
Internationaler Finanzmarkt
Marktmechanismus
Finanzintermediation
Asymmetrische Information
Suchtheorie
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gautier, Pieter A.
- Ereignis
-
Veröffentlichung
- (wer)
-
Tinbergen Institute
- (wo)
-
Amsterdam and Rotterdam
- (wann)
-
2009
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gautier, Pieter A.
- Tinbergen Institute
Entstanden
- 2009