The Irrelevance of Some Forms of Credit Constraints For Government Monetary And Debt Policy*
نویسنده
چکیده
Some economists have pointed to credit constraints as possible explanations for two phenomena. First, credit constraints could explain violations of Ricardian equivalence. Second, constraints could also provide a mechanism through which monetary policy could affect the real economy independent of effects on interest rates. Hayashi (1986) shows that some types of credit constraints do not necessarily imply a violation of Ricardian equivalence. Similarly, this paper finds that the effects of government monetary and debt policies in an economy characterized by credit constraints can be similar to those in a model without constraints. © 2000 Elsevier Science Inc.
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