@inbook{ab6d14b912154a3fb20fed617203550a,
title = "Macro, Money, and Finance: A Continuous-Time Approach",
abstract = "This chapter puts forward a manual for how to setup and solve a continuous time model that allows to analyze endogenous (1) level and risk dynamics. The latter includes (2) tail risk and crisis probability as well as (3) the Volatility Paradox. Concepts such as (4) illiquidity and liquidity mismatch, (5) endogenous leverage, (6) the Paradox of Prudence, (7) undercapitalized sectors (8) time-varying risk premia, and (9) the external funding premium are part of the analysis. Financial frictions also give rise to an endogenous (10) value of money.",
keywords = "(Inside) Money, Endogenous Risk Dynamics, Financial frictions, Macroeconomic modeling, Monetary Economics, Paradox of Prudence, Volatility paradox",
author = "Brunnermeier, {M. K.} and Y. Sannikov",
note = "Publisher Copyright: {\textcopyright} 2016 Elsevier B.V.",
year = "2016",
doi = "10.1016/bs.hesmac.2016.06.002",
language = "English (US)",
isbn = "9780444594877",
series = "Handbook of Macroeconomics",
publisher = "Elsevier B.V.",
pages = "1497--1545",
editor = "Taylor, {John B.} and Harald Uhlig",
booktitle = "Handbook of Macroeconomics, 2016",
}