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In monetary models in which agents are subject to trading shocks there is typically an ex-post inefficiency in that some agents are holding idle balances while others are cash constrained. This inefficiency creates a role for financial intermediaries, such as banks, who accept nominal deposits...
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"Money is a legal institution with principal economic and sociological consequences. Money is a debt, because that is …, from the debtor's viewpoint, as debt. This book presents a legal theory of money, based on the concept of dematerialised … property. It describes the money creation or money supply process for cash and for bank money, and looks at modern forms of …
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