Artículo
The leverage cycle default and foreclosure
Fecha
2014Resumen
At least since the time of Irving Fisher economists as well as the general public have regarded the interest rate as the most important variable in the economy. But in times of crisis collateral rates (margins or leverage equivalently) are far more important. Despite the cries of newspapers to lower the interest rates the Fed would sometimes do much better to attend to the economy-wide leverage and leave the interest rate alone.