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 …

model presented extends the theory of King and Plosser by recognizing that both money and trade credit provide transactions … services. The model shows that the comovements between money and trade credit can reveal the nature of the underlying shocks …

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 …