Debt-deflation: concepts and a stylised model

Goetz von Peter ()

No 176, BIS Working Papers from Bank for International Settlements

Abstract: This paper proposes a model of how agents adjust their asset holdings in response to losses in general equilibrium. By emphasising the relation between deflation and financial distress, we capture some original features of the early debt-deflation literature, such as distress selling, instability, and endogenous monetary contraction.

Keywords: Asset Prices; Inside Money; Debt-Deflation; Leverage; Refinancing; Losses; Financial Distress; Distress Selling; Credit (search for similar items in EconPapers)
JEL-codes: E31 E51 G18 G21 G33 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2005-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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