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We study money creation and destruction in today's monetary architecture and examine the impact of monetary policy and capital regulation in a general equilibrium setting. There are two types of money created and destructed: bank deposits, when banks grant loans to firms or to other banks and...
Persistent link: https://www.econbiz.de/10011557571
The article compares the social efficiency of monetary targeting and inflation targeting when central banks may have …. Under inflation targeting and monetary targeting, central banks may have an incentive to signal their private information in … order to influence the public's expectations about future inflation. We show that inflation targeting is superior to …
Persistent link: https://www.econbiz.de/10014173888
growth and future inflation, and between employment and inflation. We show that the social value of transparency concerning …
Persistent link: https://www.econbiz.de/10014207141
Persistent link: https://www.econbiz.de/10011522048
Persistent link: https://www.econbiz.de/10012622322
We establish a benchmark result for the relationship between the loanablefunds and the money-creation approach to banking. In particular, we show that both processes yield the same allocations when there is no uncertainty and thus no bank default. In such cases, using the much simpler...
Persistent link: https://www.econbiz.de/10011760873
We study money creation and destruction in today's monetary architecture and examine the impact of monetary policy and capital regulation in a general equilibrium setting. There are two types of money created and destructed: bank deposits, when banks grant loans to firms or to other banks and...
Persistent link: https://www.econbiz.de/10011558083
We establish a benchmark result for the relationship between the loanablefunds and the money-creation approach to banking. In particular, we show that both processes yield the same allocations when there is no uncertainty and thus no bank default. In such cases, using the much simpler...
Persistent link: https://www.econbiz.de/10011764472
We study money creation and destruction in today's monetary architecture within a general equilibrium setting. Two types of money are created and destructed: bank deposits, when banks grant loans to firms or to other banks, and central bank money, when the central bank grants loans to private...
Persistent link: https://www.econbiz.de/10011688423
Persistent link: https://www.econbiz.de/10000905117