Money, Banking, and Economic Welfare.

Trust: Economic Notions and its role in Money and Banking

......................................................................................................................... 2 Trust: Economic Notions and its role in Money and Banking – An Introduction ....... 11 Realism .................................................................................................................... 12 Open Systems and Closed systems .............................

Money, credit and banking

In monetary models in which agents are subject to trading shocks there is typically an ex-post inefficiency in that some agents are holding idle balances while others are cash constrained. This inefficiency creates a role for financial intermediaries, such as banks, who accept nominal deposits and make nominal loans. We show that in general financial intermediation improves the allocation and t...

Money, Banking, and Finance

Money, liquidity and welfare

This paper develops an analytically tractable Bewley model of money demand to shed light on some important questions in monetary theory, such as the welfare cost of inflation. It is shown that when money is a vital form of liquidity to meet uncertain consumption needs, the welfare costs of inflation can be extremely large. With log utility and parameter values that best match both the aggregate...

Financial Markets , Money , and Banking

■ Abstract The study of financial markets, money, and banking is largely considered the purview of economics. Yet sociologists have contributed greatly to understanding financial relations since the early history of the discipline. This review begins with an overview of classical sociological approaches to financial markets, money, and banking and then describes how research in these areas expl...