• Leaning Against the Wind When Credit Bites Back 

      Gerdrup, Karsten R.; Hansen, Frank; Krogh, Tord; Maih, Junior (Working Papers;9/2016, Working paper, 2016)
      This paper analyzes the cost-benefit trade-off of leaning against the wind (LAW) in monetary policy. Our starting point is a New Keynesian Markov-switching model where the economy can be in a normal state or in a crisis ...