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【Macro/Finance webinar】A Theory of Payments-Chain Crises


  • 研討會日期 : 2022-09-16
  • 時間 : 09:00
  • 主講人 : Professor Saki Bigio
  • 地點 : online
  • 演講者簡介 : Professor Bigio received his Ph.D. in Economics from New York University in 2012. He is currently an Associate Professor at University of California, Los Angeles. His research interests are Macroeconomics, Finance and Banking.
  • 演講摘要 : I introduce payment chains into a business cycle model. Consumption decisions are linked to each other in a chain of payments. Whereas some payments can be made immediately, other payments are postponed until other payments are executed. Delays in payments delay production. An unexpected contraction in some agents ability to obtain credit leads to a payments crisis. At an initial phase, a contraction in credit sends a mass of agents to a liquidity-constrained status. This delays their payments, but also slows down the payment of others, causing a cascade in delays in a chain of payments. The real effects of these delays is isomorphic to a drop in TFP, which in turn, shows up as a pecuniary externality. I characterize the transitional dynamics and characterize the sources of constrained inefficiency. For suitable preferences, the effects of an initial credit contraction may persist well after credit limits have been normalized.