Tight Money And Loose Credit In An Open Economy

Money Growth Rules in an Emerging Small Open Economy with an informal sector

This paper is concerned with the saddle-path stability of monetary growth rules in a two-country two-sector dynamic stochastic general equilibrium model. Alongside standard features of emerging economies, such as a combination of producer and local currency pricing for exports, fiscal dominance and oil exports, this model also incorporates informal labour and production sectors and examines how...

Notes on Money, Credit, and Open Market Operations

These are some notes on a project I am working on as an extension of Williamson (2005b). The basic idea is to explore the implications of market segmentation, where the key novelty involves goods market segmentation and the proximity of connected households to particular goods markets. A connected household is on the receiving end of central bank actions, while an unconnected household is not. ...

money demand in an interest free economy

the objective of this study is to derive a money demand function compatible with the islamic economic rules, i.e., prohibition of reba. this rule, evidently eliminates the loan market from the economy.therefore, we propose that the islamic financial markets could link the real and nominal sectors of the economy and provide the information needed by both the financial intermediaries and the cent...

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...

The Credit Money and State Money Approaches