Macroeconomic Models with Equity and Credit Rationing

Bruce C. Greenwald and Joseph Stiglitz

No 3533, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper presents a simple, general equilibrium macroeconomic model incorporating financial constraints, both credit and equity rationing, as well as other informational imperfections in labor and product markets, such as efficiency wage effects. A formulation somewhat analogous to the standard IS-LM model, but not suffering from the well known defects of that model, is derived. The mechanisms by which monetary policy affects the economy are described. Dynamics, including implications for long run growth, are investigated.

Date: 1990-12
Note: EFG
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Citations: View citations in EconPapers (111)

Published as Bruce C. Greenwald & Joseph E. Stiglitz & Andrew Weiss, 1989. "Macroeconomic models with equity and credit rationing," Proceedings, Federal Reserve Bank of San Francisco.
Published as Assymetric Information, Corporate Finance, and Investment, edited by R. Glenn Hubbard, pp. 15-42. Chicago, IL: University of Chicago Press, 1990.
Published as Macroeconomic Models with Equity and Credit Rationing , Bruce C. Greenwald, Joseph E. Stiglitz. in Asymmetric Information, Corporate Finance, and Investment , Hubbard. 1990

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Chapter: Macroeconomic Models with Equity and Credit Rationing (1990)
Journal Article: Macroeconomic models with equity and credit rationing (1989)
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