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The COVID-19 Pandemic : Is Now the Time for Modern Monetary Theory or Permanent Monetary Finance?

Schlotmann, Olaf - 2020

In response to the COVID-19 pandemic, G7 central banks have launched asset purchase programs in anticipation of an increase in government bond offerings to finance ballooning fiscal deficits. As the volume of government bonds owned by private investors is not expected to rise during the current...

Persistent link: https://www.econbiz.de/10012833335

Fiat Money Oligopolistic Economy With Labor/Leisure Trade-Off and Equilibrium Default

Levando, Dmitry - 2019

We are constructing an imperfect competition general equilibrium model, with non-consumable money and labor market; our toolkit is an equilibrium default model of Shubik-Wilson (1978). Our result has an ‘equilibrium volatility' simultaneously occurring at all three markets: labor, goods, and...

Persistent link: https://www.econbiz.de/10012895423

New Monetary Solutions in Commemorative Coinage

Matic, Branko - 2008

The author researches a singular monetary situation connected with the common issue of commemorative coin age by two states: Ireland, an EU member state that belongs to the Euro-system, and Croatia, an EU membership candidate. Although they belong to two different monetary systems, the two...

Persistent link: https://www.econbiz.de/10012772128

Modern Monetary Theory from a Monetarist Angle

Heartspring, William - 2019

This paper presents an alternative presentation of Modern Monetary Theory (MMT). The main thesis of this paper is that when a nation has monetary sovereignty and fiat currency, government is quite flexible its methods in controlling price level through market mechanisms, as Warren Mosler - one...

Persistent link: https://www.econbiz.de/10012869400

Money, Liquidity and Welfare

Wen, Yi - 2014

This paper develops an analytically tractable Bewley model of money demand to shed light on some important questions in monetary theory, such as the welfare cost of inflation. It is shown that when money is a vital form of liquidity to meet uncertain consumption needs, the welfare costs of...

Persistent link: https://www.econbiz.de/10013059239

Money Creation in Decentralized Finance : A Dynamic Model of Stablecoin and Crypto Shadow Banking

Li, Ye; Mayer, Simon - 2021

Stablecoins rise to meet the demand for safe assets in decentralized finance. Stablecoin issuers transform risky reserve assets into tokens of stable values, deploying a variety of tactics. To address the questions on the viability of stablecoins, regulations, and the initiatives led by large...

Persistent link: https://www.econbiz.de/10013214344

Aggregation-Theoretic Monetary Aggregation Over the Euro Area, When Countries are Heterogeneous

Barnett, William A. - 2021

We derive fundamental new theory for measuring monetary service flows aggregated over countries within the European Monetary Union (EMU). We develop three increasingly restrictive approaches: (1) the heterogeneous agents approach, (2) the multilateral representative agent approach, and (3) the...

Persistent link: https://www.econbiz.de/10013319716

Procyclical finance : the money view

Li, Ye - 2017

Financial intermediaries issue the majority of liquid securities, and nonfinancial firms have become net savers, holding intermediaries' debt as cash. This paper shows that intermediaries' liquidity creation stimulates growth -- firms hold their debt for unhedgeable investment needs -- but also...

Persistent link: https://www.econbiz.de/10011968932

Keyne's Approach to Money : An Assessment after 70 Years

Wray, L. Randall - 2006

This paper first examines two approaches to money adopted by Keynes in the General Theory (GT). The first is the more …. Indeed, even Post Keynesians utilizing Keynes's "finance motive" or the "horizontal" money supply curve adopt similar … methodology. The second approach of the GT is presented in Chapter 17, where Keynes drops "money supply and demand" in favor of a …

Persistent link: https://www.econbiz.de/10014059769

Gold, Fiat and Credit. An Elementary Discussion of Commodity Money, Fiat Money and Credit

Quint, Thomas; Shubik, Martin - 2004

In this paper we present a series of models, all within the context of a simple two-good economy, which bring out the distinctions between the different types of money and financial institutions. The models emphasize the physical properties of the economic goods, moneys, and trading systems. In...

Persistent link: https://www.econbiz.de/10014071736