driven by the crisis. Our general point is that money matters in financial markets. Different financial assets have different …

asset (money). We show that, even in the absence of asymmetric information or an agency problem, the private provision of … this. This distortion is present even if we introduce lending and government money. To eliminate the inefficiency the …

purchase different sizes of transactions. This can explain the demand for money itself, the precautionary demand for money, and …

This paper develops a new framework for the process of money supply. In contrast to models like McCallum (1989) based … on the money multiplier analysis or the credit market models of Brunner and Meltzer (1966, 1973) our model explicitly … money and the market for bank credit (which is identical to the macroeconomic 'money market'). Special emphasis is placed on …

develop a simple theoretical framework for the money supply process which is able to analyze the need for such measures as … money supply under "normal conditions". It then shows how the different shocks of the financial market crisis have affected …

amount of assets. The implication is that, instead of studying money demand using time series and looking at historical … can use this methodology to estimate the interest elasticity of money demand at interest rates close to zero. We find that …: (a) the elasticity of money demand is very small when the interest rate is small; (b) the probability that a household …

This paper investigates whether the quantity theory of money is still alive. We demonstrate three insights. First, for … countries with low inflation, the raw relationship between average inflation and the growth rate of money is tenuous at best …. Second, the fit markedly improves, when correcting for variation in output growth and the opportunity cost of money, using …

States, controlling for the short-term real interest rate. In this paper, I show that the same property of base money holds … included in the money demand function. Because the long-term real rate matters for aggregate demand, the presence of the long …-term nominal rate in the money demand function increases the effect of nominal money stock changes on real aggregate demand when …

The Paper provides a formalization of the monetary economics folk proposition that government fiat money is an asset of … the holder (the private sector) but not a liability of the issuer (the state). Money is 'net wealth' in the limited sense … the terminal money stock remains a component of comprehensive household wealth. The issuance of irredeemable fiat money …