This paper compares price-level-path targeting (PT) with inflation targeting (IT) in a sticky-price, dynamic, general equilibrium model augmented with imperfections in both the debt and equity markets.
Staff working papers
We document the cyclical behavior of debt, equity, and retained earnings for different firm categories using firm-level Canadian data.
The authors show that debt and equity issuance are procyclical for most listed U.S. firms.
The author analyzes a general-equilibrium model of a heterogeneous agents economy in which the agents are subject to borrowing constraints and uninsurable idiosyncratic production risk.