The fact that money, banking, and financial markets interact in important ways seems self-evident. The theoretical … for government money, where the terms of bank deposit contracts are constrained by the liquidity insurance available in …

A wide range of heterodox theories claim that banks are special because they create money in the act of lending. Put …

A wide range of heterodox theories claim that banks are special because they create money in the act of lending. Put …

The fact that money, banking, and financial markets interact in important ways seems self-evident. The theoretical … for government money, where the terms of bank deposit contracts are constrained by the liquidity insurance available in …

The business of money creation is conceptually distinct from that of intermediation. Yet, these two activities are … question: When is banking essential? There is a role for money due to a lack of record-keeping and a role for intermediation … due to the existence of private information: both money and intermediation are essential. When monitoring costs associated …

Lagos and Wright (2005) demonstrate how the essential properties of a money-search model are preserved in an … markets under limited commitment and private information. The analysis demonstrates clearly how insurance, credit, and money … the Friedman rule. In particular, I find that the same frictions that render money essential may at the same time operate …