Tsomocos, Dimitrios; Goodhart, C.A.E.; Isakov, K.S.; …
borrowers, as well as creditors, consumption over the business cycle. Based on [Goodhart, Peiris and Tsomocos, 2018], we … contractual debt obligations that is commensurate to the level of default. However, this cost depends explicitly on the business … amplitude of the business cycle and benefit financial stability. In sum, the appropriate design of monetary policy complements …