Steven H. Russell

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We study a simple neoclassical model of investment in a developing country, modified to allow for long-term projects and short-term debt. Early signals indicating low productivity of investment may lead creditors to call loans in early. In such a crisis, firms protected by limited liability default and liquidate capital, even thought they do so at a loss (a(More)
rate of the base money stock that produce permanent changes in the rate of inflation. We follow the bulk of the inflation-cost literature by basing our cost estimates on comparisons of alternative steady states. We follow the recent trend in applied macroeconomic theory by calibrating our model to increase the empirical credibility of its predictions. The(More)
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