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 feature of the model is that cash circulates between economic …

, holding intermediaries' debt as cash. This paper shows that intermediaries' liquidity creation stimulates growth -- firms hold …

This paper studies a modern monetary economy: trade in both goods and securities relies on money provided by … intermediaries. While money is valued for its liquidity, its creation requires costly leverage. Inflation, security prices and the … if it helps back inside money, and lower if more inside money is used to trade it. Inflation can be low in security …

establish their online advertising strategies. The results indicates that paydayloans are presented as ‘easy-to-obtain cash' and …

monetary policy a complement to or a substitute for macroprudential policy? What is the role of money-financed fiscal expansion … fourth, that money-financed fiscal expansion is effective in raising output and inflation, and accompanied with lower credit …

.S. states are small open economies with fixed exchange rates, state-specific shocks to money demand are automatically … variable, I find that shocks to money demand have large and statistically significant effects on the supply of bank loans, but …