The business of money creation is conceptually distinct from that of intermediation. Yet, these two activities are frequently---but not always---combined together in the form of a banking system. We develop a simple model to examine the question: When is banking essential? There is a role for...

Debate over Growth and Development are quite old in the history of economic thinking. It is argued that development encompasses comprehensive issues like health, education, equality, and liveability while growth is too narrow a concept. This paper analyses the growth and development experience...

Wide regional variation has been a major characteristic of development experience in India. In the present study, the multidimensional facet of development is sought to be reflected through composite indices of development. It deals with the development trends exhibited at the National as well...

Theoretical propositions proclaim that the association between Infrastructure Availability and Development of a region is quite strong and runs from the former to the latter. Empirical studies are however, inconclusive. While few researchers have concluded that the impact of infrastructure on...

I study a version of the Lagos-Wright (2005) model for which the Friedman rule is always a desirable policy, but where implementation may be constrained by the need to respect incentive-feasibility. In the environment I consider, incentives are distorted owing to private information and limited...

In this paper, I provide a rationale for why money should earn interest; or, what amounts to the same thing, why risk-free claims to non-interest-bearing money should trade at discount. I argue that interest-bearing money is essential when individual money balances are private information. The...