Monetary Policy and the Financing of Firms
构建了一个企业可能因冲击而违约的模型，研究货币政策应如何应对金融条件变化，发现允许通胀波动可能是最优的，且泰勒规则可能产生与最优政策相反的周期特征。
How should monetary policy respond to changes in financial conditions? We consider a simple model where firms are subject to shocks which may force them to default on their debt. Firms' assets and liabilities are nominal and predetermined. Monetary policy can therefore affect the real value of funds used to finance production. In this model, allowing for inflation volatility in response to aggregate shocks can be optimal; the optimal response to adverse financial shocks is to lower interest rates and to engineer some inflation; and the Taylor rule may implement allocations that have opposite cyclical properties to the optimal ones.