Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Research Department.
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| ISBN: | 1451900066
9781451900064
1452770409
9781452770406
1282107380
9781282107380
9786613800732
6613800732
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| Notes: | Includes bibliographical references (pages 23-24).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Annotation This paper addresses two complications arising from the use of collateral requirements in debt contracts between wealth-constrained entrepreneurs and banks. First, costly asset liquidation is found to enhance the susceptibility of debt finance to interest rate volatility. Second, aggregate uncertainty in conjunction with limited bank capitalization is shown to produce excessive credit constraints that, under certain conditions, justify the public supply of liquidity. the paper suggests applications with respect to models of interest rate smoothing and self-fulfilling currency crises.
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| Other form: | Print version: Schellekens, Philip. Costly collateral and the public supply of liquidity. [Washington, D.C.] : International Monetary Fund, Research Dept., ©2000
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