Arbeitspapier
Money, credit and banking
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 and make nominal loans. We show that in general financial intermediation improves the allocation and that the gains in welfare arise from paying interest on deposits and not from relaxing borrowers? liquidity constraints. We also demonstrate that increasing the rate of inflation can be welfare improving when credit rationing occurs.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 1617
- Classification
-
Wirtschaft
- Subject
-
money
credit
rationing
banking
Geldtheorie
Geld
Kredit
Mengenrationierung
Geldmengensteuerung
- Event
-
Geistige Schöpfung
- (who)
-
Berentsen, Aleksander
Camera, Gabriele
Waller, Christopher Jude
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Berentsen, Aleksander
- Camera, Gabriele
- Waller, Christopher Jude
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2005
Other Objects (12)
Money, credit and banking and the cost of financial activity
Banking, Inside Money and Outside Money
Money and costly credit
Money, banking and financial markets
Credit risk and credit derivatives in banking
Credit Markets and Narrow Banking
Money and banking with reserves and CBDC
Banking, finance, and money: A socioeconomics approach
Money and modern banking without bank runs
Money, banking, and old-school historical economics
Money, credit and imperfect competition among banks
Money and credit: A long-term view
Money, credit and banking and the cost of financial activity
Banking, Inside Money and Outside Money
Money and costly credit
Money, banking and financial markets
Credit risk and credit derivatives in banking
Credit Markets and Narrow Banking
Money and banking with reserves and CBDC
Banking, finance, and money: A socioeconomics approach
Money and modern banking without bank runs
Money, banking, and old-school historical economics
Money, credit and imperfect competition among banks
Money and credit: A long-term view
Money, credit and banking and the cost of financial activity
Banking, Inside Money and Outside Money
Money and costly credit
Money, banking and financial markets
Credit risk and credit derivatives in banking
Credit Markets and Narrow Banking
Money and banking with reserves and CBDC
Banking, finance, and money: A socioeconomics approach
Money and modern banking without bank runs
Money, banking, and old-school historical economics
Money, credit and imperfect competition among banks