@inbook{552,
  author = {Markus Brunnermeier and Thomas Eisenbach and Yuliy Sannikov},
  title = {Macroeconomics with Financial Frictions: A Survey},
  abstract = { <p>This article surveys the macroeconomic implications of financial frictions. Financial frictions lead to persistence and when combined with illiquidity to non-linear amplification eects. Risk is endogenous and liquidity spirals cause financial instability. Increasing margins further restrict leverage and exacerbate the downturn. A demand for liquid assets and a role for money emerges. The market outcome is generically not even constrained ecient and the issuance of government debt can lead to a Pareto improvement. While financial institutions can mitigate frictions, they introduce additional fragility and through their erratic money creation harm price stability.</p> },
  year = {2013},
  journal = {Advances in Economics and Econometrics, Tenth World Congress of the Econometric Society},
  publisher = {Cambridge University Press},
  address = {New York},
  language = {eng},
}