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Outside Versus Inside Bonds : A Modigliani-Miller Type Result for Liquidity Constrained Economies
Berentsen, Aleksander - 2010
When agents are liquidity constrained, two options exist - sell assets or borrow. We compare the allocations arising in two economies: in one, agents can sell government (outside) bonds and in the other they can borrow by issuing (inside) bonds. All transactions are voluntary, implying no...
Persistent link: https://www.econbiz.de/10013135267
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The Quantity Theory of Money and Friedmanian Monetary Policy : An Empirical Investigation
Hillinger, Claude - 2013
We introduce an approach for the empirical study of the quantity theory of money (QTM) that is novel both with respect to the specific steps taken as well as the general methodology employed. Empirical studies of the QTM have focused directly on the relationship between the rate of change of the...
Persistent link: https://www.econbiz.de/10013091422
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Is Optimal Monetary Policy Always Optimal?
Davig, Troy - 2015
No. And not only for the reason you think. In a world with multiple inefficiencies the single policy tool the central bank has control over will not undo all inefficiencies; this is well understood. We argue that the world is better characterized by multiple inefficiencies and multiple policy...
Persistent link: https://www.econbiz.de/10013017379
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Superneutrality of Money Under Open Market Operations
Homburg, Stefan - 2015
Monetary policy is superneutral in an overlapping generations model. Previous authors have argued that superneutrality does not hold in such a setting. However, the standard results rely on the counter-factual premise of helicopter money and are overturned if money creation through open market...
Persistent link: https://www.econbiz.de/10013026679
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Banking Panics and Liquidity in a Monetary Economy
Matsuoka, Tarishi - 2018
This paper studies banks' liquidity provision in the Lagos and Wright model of monetary exchanges. With aggregate uncertainty we show that banks sometimes exhaust their cash reserves and fail to satisfy their depositors' need of consumption smoothing. The banking panics can be eliminated by the...
Persistent link: https://www.econbiz.de/10012930807
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Liquidity Shortages and Monetary Policy
Cao, Jin; Illing, Gerhard - 2021
The paper models the interaction between risk taking in the financial sector and central bank policy for the case of pure illiquidity risk. It is shown that, when bad states are highly unlikely, public provision of liquidity may improve the allocation, even though it encourages more risk taking...
Persistent link: https://www.econbiz.de/10013316591
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Money Creation and Destruction
Faure, Salomon - 2017
We study money creation and destruction in today's monetary architecture within a general equilibrium setting. Two types of money are 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...
Persistent link: https://www.econbiz.de/10012950289
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Net Neutrality and Internet Fragmentation : The Role of Online Advertising
D'Annunzio, Anna - 2015
We investigate the relation between Net Neutrality regulation and Internet fragmentation. We model a two-sided market …, where Content Providers (CPs) and consumers interact through Internet Service Providers (ISPs), and CPs sell consumers … identify an important link between termination fees, the online advertising market and Internet fragmentation. We extend the …
Persistent link: https://www.econbiz.de/10013017710
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How Social Reputation Networks Interact with Competition in Anonymous Online Trading : An Experimental Study
Bolton, Gary E. - 2014
Many Internet markets rely on quot;feedback systemsquot;, essentially social networks of reputation, to facilitate …
Persistent link: https://www.econbiz.de/10012751561
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The Economics of Bitcoins -- Market Characteristics and Price Jumps
Gronwald, Marc - 2015
This paper deals with the economics of Bitcoins in two ways. First, it broadens the discussion on how to capture Bitcoins using economic terms. Center stage in this analysis take the discussion of some unique characteristics of this market as well as the comparison of Bitcoins and gold. Second,...
Persistent link: https://www.econbiz.de/10013030485