Optimal Monetary Policy in a Collateralized Economy
---- Acknowledgments ----
Thanks to Javier Bianchi, Hal Cole, Zhiguo He, Sebastian Infante, Todd Keister, Rich Kihlstrom, participants at the Monetary Policy Implementation and Transmission in the Post-Crisis Period Conference of the Federal Reserve Board and to seminar participants at Tsinghua University, University of Pennsylvania, Bank for International Settlements and Ohio State University. Gorton and He have nothing to disclose. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.