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Money and dynamic credit arrangements with private information

Aiyagari, S. Rao; Williamson, Stephen D. - Federal Reserve Bank of Cleveland - 1998

The authors construct a model with private information in which consumers write dynamic contracts with financial intermediaries.

Persistent link: https://www.econbiz.de/10005729020

Optimal Contracts, Aggregate Risk, and the Financial Accelerator

Carlstrom, Charles; Fuerst, Timothy S.; Paustian, Matthias - Federal Reserve Bank of Cleveland - 2014

This paper derives the optimal lending contract in the financial accelerator model of Bernanke, Gertler and Gilchrist (1999), hereafter BGG. The optimal contract includes indexation to the aggregate return on capital, household consumption, and the return to internal funds. This triple...

Persistent link: https://www.econbiz.de/10011165809

Targeting Long Rates in a Model with Segmented Markets

Carlstrom, Charles; Fuerst, Timothy S.; Paustian, Matthias - Federal Reserve Bank of Cleveland - 2014

This paper develops a model of segmented financial markets in which the net worth of financial institutions limits the degree of arbitrage across the term structure. The model is embedded into the canonical Dynamic New Keynesian (DNK) framework. We estimate the model using data on the term...

Persistent link: https://www.econbiz.de/10011165812

The Transmission of the Financial Crisis in 1907: An Empirical Investigation

Tallman, Ellis W.; Moen, Jon Roger - Federal Reserve Bank of Cleveland - 2014

Using an extensive high-frequency data set, we investigate the transmission of financial crisis specifically focusing on the Panic of 1907, the final severe panic of the National Banking Era (1863-1913). We trace the transmission of the crisis from New York City trust companies to the New York...

Persistent link: https://www.econbiz.de/10011114902

Volatile Lending and Bank Wholesale Funding

Craig, Ben; Dinger, Valeriya - Federal Reserve Bank of Cleveland - 2014

The paper presents the first empirical study of the relation between bank loan volume volatility and bank retail and wholesale liabilities. We argue that since the volume of retail deposits is inflexible, banks facing volatile loan demand tend to fund loans with larger shares of wholesale rather...

Persistent link: https://www.econbiz.de/10011114920

Money and capital as competing media of exchange

Lagos, Ricardo; Rocheteau, Guillaume - Federal Reserve Bank of Cleveland - 2006

We construct a model in which capital competes with fiat money as a medium of exchange, and establish conditions on … fundamentals under which fiat money can be both valued and socially beneficial. When the socially efficient stock of capital is too … rule, fiat money provides just enough liquidity so that agents choose to accumulate the same capital stock a social planner …

Persistent link: https://www.econbiz.de/10005526593

Optimal employment of scale economies in the Federal Reserve's currency infrastructure

Bauer, Paul W.; Burnetas, Apostolos; CVSA, Viswanath; … - Federal Reserve Bank of Cleveland - 1998

Given estimates of shipping costs and scale economies for high-speed currency sorting, the authors investigate whether the Federal Reserve might lower its costs by reallocating the volume of sorting among its processing sites.

Persistent link: https://www.econbiz.de/10005526603

Private money creation and the Suffolk Banking System

Smith, Bruce D.; Weber, Warren E. - Federal Reserve Bank of Cleveland - 1998

Recent legislation has removed U.S. legal impediments to issuing private bank notes. At the same time, improved transaction technologies have enabled banks and other entities to issue various forms of "e-cash." Consequently, developed economies may soon see the reemergence of privately issued...

Persistent link: https://www.econbiz.de/10005526613

Money and competing assets under private information

Rocheteau, Guillaume - Federal Reserve Bank of Cleveland - 2008

I study random-matching economies where at money coexists with real assets, and no restrictions are imposed on payment … the usefulness of at money. The liquidity of the real asset, as measured by its transaction velocity, is shown to depend …

Persistent link: https://www.econbiz.de/10005526649

Currency portfolios and nominal exchange rates in a dual currency search economy

Craig, Ben; Waller, Christopher J. - Federal Reserve Bank of Cleveland - 1999

The authors analyze a dual-currency search model in which agents may hold multiple units of both currencies. They study equilibria in which the two currencies are identical and equilibria in which the two currencies differ according to the magnitude of the "inflation tax" risk associated with...

Persistent link: https://www.econbiz.de/10005428195