This paper argues the predictive power of the sectoral approach towards a quantity theory of credit is weak. A quantity theory of commercial-bank-seigniorage approach is proposed in its place. It suggests that the financial system may be held responsible for price and output fluctuations to the...

This paper investigates the impact of monetary policy on the optimal bank behavior under oligopolistic conditions. In addition, we attempt to extend this analysis in the sphere of bank-clients behavior.We concentrate on the way the minimum reserve requirements of commercial banks influence the...