Leaning Against the Credit Cycle
研究了央行如何通过利率政策稳定债务与GDP之比，发现由于家庭债务的持续性，加息在短期反而会推高该比率，而稳定债务需要更宽松的政策来通过通胀和增长减轻债务负担。
How should a central bank act to stabilize the ratio of debt over gross domestic product (GDP)? We show how the persistent nature of household debt shapes the answer to this question. In environments where households repay mortgages gradually, surprise interest hikes only weakly influence household debt, and tend to increase debt-to-GDP in the short run while reducing it in the medium run. Interest rate rules with a positive weight on debt-to-GDP cause indeterminacy. Compared to inflation targeting, debt-to-GDP stabilization calls for a more expansionary policy when debt-to-GDP is high, so as to deflate the debt burden through inflation and output growth.