He, Ping; Huang, Lixin; Wright, Randall - In: International Economic Review 46 (2005) 2, pp. 637-670
We develop a new theory of money and banking based on the old story in which goldsmiths start accepting deposits for safe keeping, then their liabilities begin circulating as media of exchange, then they begin making loans. We first discuss the history. We then present a model where agents can...