【主讲】Feng Dong (上海交通大学安泰经济学院)
【主题】The Perils of Credit Booms
【时间】2015年10月29日 (周四) 15：30-17：00
【地点】上海财经大学经济学院楼701室
【语言】英文
【摘要】Credit booms often cause economic expansions. But some credit booms end in financialcrises and others do not. This paper presents a dynamic macroeconomic model with adverseselection in the financial market to address this issue. Entrepreneurs can take short-termcollateralized debt and trade long-term assets to finance investment. Funding liquidity canerode market liquidity. High funding liquidity discourages firms from selling their goodlong-term assets since these good assets have to subsidize lemons when there is informationasymmetry. This can cause a liquidity dry-up in the market for long-term assets and evena market breakdown, resulting in a financial crisis. Multiple equilibria can coexist. Creditbooms combined with changes in beliefs can cause equilibrium regime shifts, leading to aneconomic crisis or expansion.
