The authors investigate the extent to which monetary policy can enhance the functioning of the private credit system …. Specifically, they characterize the optimal return on money in the presence of credit arrangements. There is a dual role for credit … traders have access to credit. As a result, there is a social role for fiat money because it allows agents to self …

This paper examines the different effects of macroprudential policy and monetary policy on credit and inflation using a … simple New Keynesian model with credit. In this model, macroprudential policy is effective in stabilizing credit but has a … instrument to stabilize credit. The determinacy of the model requires the interest rate’s response to inflation to be greater …

In the data, most consumer defaults on unsecured credit are informal and the lending industry devotes significant … resources to debt collection. We develop a new theory of credit card lending that takes these two features into account. The two …. We show that the model gives rise to a novel channel through which IT progress can affect outcomes in the credit markets …

The author studies the terms of credit in a competitive market in which sellers are willing to repeatedly finance the … purchases of buyers by extending direct credit. Lenders (sellers) can commit to deliver any long-term credit contract that does … contract. A borrower's ability to repay a loan is privately observable. As a result, the terms of credit within an enduring …

America’s small businesses have adopted credit cards as both a payment method and a borrowing vehicle. The segment also … with respect to credit cards. To obtain an update on these issues, the Payment Cards Center hosted a workshop facilitated … supply and demand conditions for small business credit cards. In addition to these positive post-recession observations …