much the money supply or the T-bill interest rate, but the availability of credit, and the terms at which credit is made … the lending rate may increase, so even as the T bill rate decreases, the lending rate increases. An increase in credit …

We propose a model of money, credit and bubbles, and use it to study the role of monetary policy in managing asset … bubbles. In this model, bubbles pop up and burst, generating fluctuations in credit, investment and output. Two key insights … away from bubbles - and the credit that they sustain - to money, reducing intermediation, investment and growth. We explore …

exchange. Money is important because of the relationship between money and credit. The process of judging credit worthiness, in … circumstances can have marked effects on the relevance of previously accumulated information and accordingly on the supply of credit …. Changes in the availability of credit may have marked effects on the level of economic activity, while changes in real …

Standard models of aggregate demand treat money and credit asymmetrically; money is given a special status, while loans … is that loans and bonds are imperfect substitutes. In the modified model, credit supply and demand shocks have … policy implication is that the relative value of money and credit as policy indicators depends on the variances of shocks to …

among money, credit and nonfinancial economic activity. Data for the United States since World War II show that the volume … of outstanding credit is as closely related to economic activity as is the stock of money, and moreover that neither … money nor credit is sufficient to account fully for the effect of financial markets in determining real economic activity …