Faure, Salomon; Gersbach, Hans - 2016 - This version: October 2016
We study money creation and destruction in today's monetary architecture and examine the impact of monetary policy and … capital regulation in a general equilibrium setting. There are two types of money created and destructed: bank deposits, when … banks grant loans to firms or to other banks and central bank money, when the central bank grants loans to private banks. We …