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- Etct+1 Like in the model where risk depends on current demand, there can be discounting as long as risk is procyclical enough > 1= ( 1) (1 )( 1= 1) . But unlike the previous model, the contemporary AD elasticity to interest rates is unaected by the cyclicality of risk (this is thus similar to Acharya and Dogra (2018)). C Derivations for the Loglinearized Analytical HANK Model This section outlines the derivations for Neo-Fisherian eects under indeterminacy, and for solving the model under a Wicksellian rule. C.1 Neo-Fisherian Eects We want to solve the equation (17) with > 1 (example: peg in the RANK model).
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