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Credit constraints and consumer spending
Beaton, Kimberly - 2009
This paper examines the relationship between aggregate consumer spending and credit availability in the United States …. The author finds that consumer spending falls (rises) in response to a reduction (increase) in credit availability …. Moreover, she provides a formal assessment of the possibility that credit availability is particularly important for consumer …
Persistent link: https://www.econbiz.de/10003933295
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Eggs in one basket : security and convenience of digital currencies
Kahn, Charles M.; Rivadeneyra, Francisco; Wong, Tsz-Nga - 2021 - Last updated: January 28, 2021
Digital currencies store balances in anonymous electronic addresses. We analyze the tradeoffs between the safety and convenience of aggregating balances in addresses, electronic wallets and banks. In our model, agents balance the risk of theft of a large account with the cost to safeguarding a...
Persistent link: https://www.econbiz.de/10012421984
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Should the central bank issue e-money?
Kahn, Charles M.; Rivadeneyra, Francisco; Wong, Tsz-Nga - 2018
Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e-money technology changes the tradeoff between public and private provision, and the tradeoff between e-money and a central bank's existing liabilities like bank notes and reserves. The...
Persistent link: https://www.econbiz.de/10011944863
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Understanding the cash demand puzzle
Jiang, Janet Hua; Shao, Enchuan - 2014
alternative means of payment such as credit cards. The main feature of the model is that cash circulates between economic … activities where the substitutability between cash and other means of payment is uneven. Our model predicts that, once credit … expands beyond a certain level, agents adjust their cash management practices in response to further credit expansions …
Persistent link: https://www.econbiz.de/10010360358
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Credit crunches from occasionally binding bank borrowing constraints
Holden, Tom D.; Levine, Paul; Swarbrick, Jonathan M. - 2017
credit offered to firms, and requiring the intermediaries to raise further funds by paying the cost to issue equity. This … are characteristic of the credit crunches observed in the data. …
Persistent link: https://www.econbiz.de/10011777841
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Financial intermediaries and the macroeconomy : evidence from a high-frequency identification
Ottonello, Pablo; Song, Wenting - 2022 - Last updated: May 20, 2022
We provide empirical evidence of the causal effects of changes in financial intermediaries' net worth on the aggregate economy. Our strategy identifies financial shocks as high-frequency changes in the market value of intermediaries' net worth in a narrow window around their earnings...
Persistent link: https://www.econbiz.de/10013252981
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Monetary policy, private debt and financial stability risks
Bauer, Gregory H.; Granziera, Eleonora - 2016
Can monetary policy be used to promote financial stability? We answer this question by estimating the impact of a monetary policy shock on private-sector leverage and the likelihood of a financial crisis. Impulse responses obtained from a panel VAR model of 18 advanced countries suggest that the...
Persistent link: https://www.econbiz.de/10011573161
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Modelling payments systems : a review of the literature
Chiu, Jonathan (contributor); Lai, Alexandra (contributor) - 2007
Payments systems play a fundamental role in an economy by providing the mechanisms through which payments arising from transactions can be settled. The existing literature on the economics of payments systems is large but loosely organized, in that each model uses a distinct set-up and sometimes...
Persistent link: https://www.econbiz.de/10003462944
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A model of tiered settlement networks
Chapman, James (contributor); Chiu, Jonathan (contributor);  … - 2008
-tier network and the availability of public credit history. Furthermore, the welfare effects of clearing agent failure can be …
Persistent link: https://www.econbiz.de/10003711684
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Quantifying contagion risk in funding markets : a model-based stress-testing approach
Anand, Kartik; Gauthier, Céline; Souissi, Moez - 2015
We propose a tractable, model-based stress-testing framework where the solvency risks, funding liquidity risks and market risks of banks are intertwined. We highlight how coordination failure between a bank's creditors and adverse selection in the secondary market for the bank's assets interact,...
Persistent link: https://www.econbiz.de/10011304764