Liquidity Deflation and Liquidity Trap under Flexible Prices: Some Microfoundations and Implications
NBER Working Paper No. 26277
---- Acknowledgments ----
I am thankful to Ricardo Caballero, Sara Calvo and Martín Uribe for useful comments on a previous version. Errors and omissions are exclusively mine. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.