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driven by the crisis. Our general point is that money matters in financial markets. Different financial assets have different …
Persistent link: https://www.econbiz.de/10008550326
-wide uncertainty and in the process also contribute to the literature on portfolio rebalancing. Our general point is that money matters …
Persistent link: https://www.econbiz.de/10011039282
driven by the crisis. Our general point is that money matters in financial markets. Different financial assets have different …
Persistent link: https://www.econbiz.de/10008922920
transmission and endogenous money creation. The framework is used to carry out an optimal policy analysis in which the policymaker …
Persistent link: https://www.econbiz.de/10011434764
Using micro-level data for the U.S., we provide new evidence-at national and state levels - of a positive (negative) relationship between the standard deviation (coefficient of variation) and the average in bank lending-rate markups. In a quantitative theory consistent with these empirical...
Persistent link: https://www.econbiz.de/10013169196
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
date, have hampered its ability to perform the functions required of a fiat money––as a medium of exchange, unit of account …
Persistent link: https://www.econbiz.de/10010938789
In this paper, we propose a quadratic term-structure model of the EURIBOR-OIS spreads. As opposed to OIS, EURIBOR rates incorporate credit and liquidity risks. Indeed, a bank that lends on the unsecured market requires compensations for facing (a) the risk of default of the borrowing bank and...
Persistent link: https://www.econbiz.de/10013007148
This theoretical model analyzes the impact of interbank credit market dynamics on the resilience of the financial system. Based on a stochastic model of interbank market credit flows, lending in the interbank market is restricted by the availability of liquidity. Following a shock...
Persistent link: https://www.econbiz.de/10012296413
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 …
Persistent link: https://www.econbiz.de/10005857754