منابع مشابه
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...
متن کاملMoney and Liquidity in Financial Markets
We argue that there is a connection between the interbank market for liquidity and the broader financial markets, which has its basis in demand for liquidity by banks. Tightness in the interbank market for liquidity leads banks to engage in what we term “liquidity pull-back”, e.g., selling assets in order to generate liquidity for themselves. By definition, trade in a highly liquid asset involv...
متن کاملMoney and Production, and Liquidity Trap
We prove the existence of monetary equilibrium in a finite horizon economy with production. We also show that if agents expect the monetary authority to significantly decrease the supply of bank money available for short term loans in the future, then the economy will fall into a liquidity trap today.
متن کاملMaking Money: Commercial Banks, Liquidity Transformation and the Payment System
We consider the interaction between the roles of a bank as a facilitator of payments in the economy and as a lender. In our model, banks make loans by issuing digital claims to an entrepreneur, who then uses them to pay for inputs. Issuing digital claims has two effects on a bank’s liquidity. First, some of these claims used as payment are cashed in before the project is over, necessitating tra...
متن کاملToward a reconcilement of endogenous money and liquidity preference
A theoretical synthesis of endogenous money and liquidity preference is not possible so long as the latter is cognized as a theory of the demand and supply of money. A key step toward the reconcilement of the two theories is a revival of the original version of Keynes’s theory, which appeared in the Treatise on Money as the “theory of bearishness.” The most widely known version of liquidity pre...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Cambridge Journal of Economics
سال: 2018
ISSN: 0309-166X,1464-3545
DOI: 10.1093/cje/bey018