This paper studies the joint business cycle dynamics of inflation, money growth, nominal and real interest rates and the … velocity of money. I extend and estimate a standard cash and credit monetary model by adding idiosyncratic preference shocks to …

This paper studies a modern monetary economy: trade in both goods and securities relies on money provided by … intermediaries. While money is valued for its liquidity, its creation requires costly leverage. Inflation, security prices and the … if it helps back inside money, and lower if more inside money is used to trade it. Inflation can be low in security …

monetary policy a complement to or a substitute for macroprudential policy? What is the role of money-financed fiscal expansion … fourth, that money-financed fiscal expansion is effective in raising output and inflation, and accompanied with lower credit …

money market destroys endogenous risk aversion and allows banks to manage credit risk and liquidity risk independently. The … separating effect of interbank money markets and recreate endogenous risk aversion of banks. …