TY  - JOUR
AU  - Greenwald,Bruce C.
AU  - Stiglitz,Joseph E.
TI  - Macroeconomic Models with Equity and Credit Rationing
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3533
PY  - 1992
Y2  - October 1992
UR  - http://www.nber.org/papers/w3533
L1  - http://www.nber.org/papers/w3533.pdf
N1  - Author contact info:
Bruce C. Greenwald
Columbia University
611 Uris Hall
New York, NY  10027
E-Mail: bg7@columbia.edu

Joseph E. Stiglitz
Uris Hall, Columbia University
3022 Broadway, Room 212
New York, NY  10027
Tel: 212/854-0671
Fax: 212/662-8474
E-Mail: jes322@columbia.edu
M1  - published as Bruce C. Greenwald, Joseph E. Stiglitz. "Macroeconomic Models with Equity and Credit Rationing," in R. Glenn Hubbard, editor, "Asymmetric Information, Corporate Finance, and Investment" University of Chicago Press, 1990 (1990)

AB  - This paper presents a simple, general equilibrium macroeconomic model incorporating financial constraints, both credit and equity rationing, as well as other informational imperfections in labor and product markets, such as efficiency wage effects. A formulation somewhat analogous to the standard IS-LM model, but not suffering from the well known defects of that model, is derived. The mechanisms by which monetary policy affects the economy are described. Dynamics, including implications for long run growth, are investigated.
ER  -