Similar Search Results

Jiang, Janet Hua; Shao, Enchuan - 2014

We develop a model to explain a puzzling trend in cash demand in recent years: the value of bank notes in circulation as a percentage of GDP has remained stable despite decreasing cash usage at points of sale owing to competition from alternative means of payment such as credit cards. The main...

Persistent link: https://www.econbiz.de/10010360358

Gazing at r-star : a hysteresis perspective

Beaudry, Paul; Kartashova, Katya; Meh, Césaire Assah - 2023 - Last updated: January 12, 2023

Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to...

Persistent link: https://www.econbiz.de/10013482643

The role of bank capital in the propagation of shocks

Meh, Césaire Assah (contributor); Moran, Kevin (contributor) - 2008

Recent events in financial markets have underlined the importance of analyzing the link between the financial health of banks and real economic activity. This paper contributes to this analysis by constructing a dynamic general equilibrium model in which the balance sheet of banks affects the...

Persistent link: https://www.econbiz.de/10003773059

Real effects of price stability with endogenous nominal indexation

Meh, Césaire Assah; Quadrini, Vincenzo; Terajima, Yaz - 2009

We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because nominal prices are observed with delay as in Jovanovic & Ueda (1997). More constrained firms sign contracts that are less indexed to the nominal price and, as a result, their...

Persistent link: https://www.econbiz.de/10003852858

Bank leverage regulation and macroeconomic dynamics

Christensen, Ian; Meh, Césaire Assah; Moran, Kevin - 2011

This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and economic cycles and examines its interaction with monetary policy. The framework used is a dynamic stochastic general equilibrium model with banks and bank capital, in which...

Persistent link: https://www.econbiz.de/10009728167

Monetary policy pass-through with central bank digital currency

Jiang, Janet Hua; Zhu, Yu - 2021 - Last updated: March 9, 2021

This paper investigates how the introduction of an interest-bearing central bank digital currency (CBDC) that serves as a perfect substitute for bank deposits as an electronic means of payment affects monetary policy pass-through. When the deposit market is not fully competitive, the CBDC tends...

Persistent link: https://www.econbiz.de/10012488040

Financial intermediation, liquidity and inflation

Chiu, Jonathan (contributor); … - 2008

This paper develops a search-theoretic model to study the interaction between banking and monetary policy and how this interaction affects the allocation and welfare. Regarding how banking affects the welfare costs of inflation: First, we find that, with banking, inflation generates smaller...

Persistent link: https://www.econbiz.de/10003790575

How long is forever in the laboratory? : three implementations of an infinite-horizon monetary economy

Jiang, Janet Hua; Puzzello, Daniela; Zhang, Cathy - 2021 - Last updated: April 5, 2021

We compare three implementation schemes of an infinite-horizon monetary economy with discounting. Under the standard random termination scheme and its block variation, the economy lasts for an indefinite number of periods and the discounting factor is captured by the probability that the economy...

Persistent link: https://www.econbiz.de/10012493316

Competing currencies in the laboratory

Jiang, Janet Hua; Zhang, Cathy - 2017

We investigate competition between two intrinsically worthless currencies as a result of decentralized interactions between human subjects. We design a laboratory experiment based on a simple two-country, two-currency search model to study factors that affect circulation patterns and equilibrium...

Persistent link: https://www.econbiz.de/10011777887

Inflation, output, and welfare in the laboratory

Jiang, Janet Hua; Puzzello, Daniela; Zhang, Cathy - 2023 - Last updated: February 13, 2023

We develop an experimental framework to investigate the quantity theory of money and the real effects of inflation in … an economy where money serves as a medium of exchange. We test the classical view that inflation reduces output and … welfare by taxing monetary exchange. Inflation is engineered by constant money growth. We conduct three treatments, where the …

Persistent link: https://www.econbiz.de/10013542097