In theory, and under some quite strong assumptions, there exists an important rigorous quantitative relationship among …-fold quantitative relationship in an ultra-simplified setting. I identify some basic applications of this simplified economic theory of …

This paper, after providing a critique of standard monetary theory based on the transactions demand for money, examines … averse banks. The effects of changes in bank net worth and bank's risk perceptions are also analyzed. In deep recessions …

used to illustrate recent developments in the theory and analysis of banking, particularly the distinction between the …

, where banks make loans repayable in goods and depositors hold claims on the bank payable on demand in goods. Aggregate … production may be delayed in the economy. If so, we show that the level of ongoing bank lending, and hence of aggregate future … reduction of total output. A number of inefficiencies including bank failures can result if deposits turn out to be too high. We …