Optimal Credit, Monetary, and Fiscal Policy under Occasional Financial Frictions and the Zero Lower Bound
Hong Kong Monetary Authority
New Keynesian model with Gertler-Kiyotaki style financial frictions featuring occasionally binding financial constraint on banks, zero lower bound on nominal interest rates, government budget constraint, credit policy (asset purchases), monetar
intermediate good producers: monopolistic competition with Calvo pricing; capital producers: perfect competition with adjustment costs
Table 2 p.172
Laissez-faire equilibrium under perfect foresight with Taylor rule