CHANG, JUIN-JEN; CHANG, WEN-YA; LAI, CHING-CHONG; WANG, PING - In: Journal of Money, Credit and Banking 39 (2007) 7, pp. 1683-1710
We construct an analytically tractable endogenous growth model of money and banking where money provides "liquidity services" to facilitate transactions and banks convert non-reserve deposits into productive capital. We examine both the long- and short-run effects of changes in the money growth...