Liquidity Trap and Excessive Leverage
---- Acknowledgments ----
The authors would like to thank Larry Ball, Ricardo Caballero, Gauti Eggertsson, Emmanuel Farhi, Ricardo Reis, Joseph Stiglitz and seminar participants at Brown University, Harvard University, London School of Economics, New York Fed, University of Maryland and conference participants at the 2013 SED meetings, 2013 Econometric Society Meetings, 2013 Summer Workshop of the Central Bank of Turkey, and the First INET Conference on Macroeconomic Externalities for helpful comments and discussions. Korinek acknowledges financial support from INET/CIGI. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.