<div class="csl-bib-body">
<div class="csl-entry">Wolf, M., & Zessner-Spitzenberg, L. (2025, June 12). <i>Addictive Monetary Policy</i> [Conference Presentation]. BSE SUMMER FORUM 2025, Barcelona, Spain. http://hdl.handle.net/20.500.12708/217312</div>
</div>
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dc.identifier.uri
http://hdl.handle.net/20.500.12708/217312
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dc.description.abstract
We provide a model connecting monetary policy, credit creation, and nancial stability. Once debt levels in the economy are high, the central bank has incentives to cut the interest rate to preserve nancial stability. By undermining repayment incentives, however, the interest rate cut drags the debt overhang into the future. We show this feedback e ect may expose the economy to self-ful lling dynamics: Interest rate expectations may fall, pushing the economy in an equilibrium with low interest rates and even more debt. Anchoring interest rate expectations, and to a lesser extent, leaning against the wind, are key to avoid that a high debt economy becomes addicted to low interest rates.
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dc.language.iso
en
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dc.subject
monetary policy
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dc.subject
credit creation
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dc.subject
financial stability
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dc.subject
financial dominance
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dc.subject
macro finance
en
dc.subject
low interest rates
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dc.subject
multiple steady states
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dc.subject
equilibrium multiplicity
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dc.title
Addictive Monetary Policy
en
dc.type
Presentation
en
dc.type
Vortrag
de
dc.contributor.affiliation
University of St. Gallen, Switzerland
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dc.type.category
Conference Presentation
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tuw.researchTopic.id
A4
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tuw.researchTopic.id
C6
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tuw.researchTopic.name
Mathematical Methods in Economics
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tuw.researchTopic.name
Modeling and Simulation
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tuw.researchTopic.value
20
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tuw.researchTopic.value
80
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tuw.publication.orgunit
E105-03 - Forschungsbereich Ökonomie
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tuw.author.orcid
0000-0002-8571-7515
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tuw.event.name
BSE SUMMER FORUM 2025
en
tuw.event.startdate
12-06-2025
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tuw.event.enddate
13-06-2025
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tuw.event.online
On Site
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tuw.event.type
Event for scientific audience
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tuw.event.place
Barcelona
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tuw.event.country
ES
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tuw.event.institution
Barcelona School of Economics
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tuw.event.presenter
Zessner-Spitzenberg, Leopold
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wb.sciencebranch
Wirtschaftswissenschaften
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wb.sciencebranch.oefos
5020
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wb.sciencebranch.value
100
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item.cerifentitytype
Publications
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item.languageiso639-1
en
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item.fulltext
no Fulltext
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item.openairetype
conference paper not in proceedings
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item.grantfulltext
none
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item.openairecristype
http://purl.org/coar/resource_type/c_18cp
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crisitem.author.dept
University of St. Gallen, Switzerland
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crisitem.author.dept
E105-03 - Forschungsbereich Ökonomie
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crisitem.author.orcid
0000-0002-8571-7515
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crisitem.author.parentorg
E105 - Institut für Stochastik und Wirtschaftsmathematik
