The I Theory of Money ∗ Markus K. Brunnermeier and Yuliy Sannikov
... are able to create money, for example by lending to businesses and home buyers, and accepting deposits backed by those loans. The amount of money created by financial intermediaries depends crucially on the health of the banking system and on the presence of profitable investment opportunities in th ...
... are able to create money, for example by lending to businesses and home buyers, and accepting deposits backed by those loans. The amount of money created by financial intermediaries depends crucially on the health of the banking system and on the presence of profitable investment opportunities in th ...
Capital Mobility, Monetization, and Money Demand
... statistically significant at the 5 percent level across countries (except for Niger where the coefficient is significant at the 10 percent level). The coefficient of the lagged dependent variable is correctly signed and is statistically significant for all seven countries. This implies that the adju ...
... statistically significant at the 5 percent level across countries (except for Niger where the coefficient is significant at the 10 percent level). The coefficient of the lagged dependent variable is correctly signed and is statistically significant for all seven countries. This implies that the adju ...
mmi12-DeNicolo 17765236 en
... The 2007-2009 financial crisis has spurred renewed efforts in systemic risk modeling. Bisias et al. (2012) provide an extensive survey of the models currently available to measure and track indicators of systemic financial risk. However, three limitations of current modeling emerge from this survey. ...
... The 2007-2009 financial crisis has spurred renewed efforts in systemic risk modeling. Bisias et al. (2012) provide an extensive survey of the models currently available to measure and track indicators of systemic financial risk. However, three limitations of current modeling emerge from this survey. ...
MONETARY CONTROL: THE SWISS EXPERIENCE Ulrich Kohli and Georg Rich I. Introduction
... were prepared to tolerate a reserve deficiency, it could not help providing assistance in the form of discount and lombard loans to commercial banks in order to make up the deficiency. Thus, if commercial banks did not maintain excess reserves, the SNB could not reduce the monetary base, at least no ...
... were prepared to tolerate a reserve deficiency, it could not help providing assistance in the form of discount and lombard loans to commercial banks in order to make up the deficiency. Thus, if commercial banks did not maintain excess reserves, the SNB could not reduce the monetary base, at least no ...
Inflation
... Theory of Money Changes in the money supply which induce parallel changes in the nominal value of output are also reflected in changes in the price level. When the Fed increases the money supply rapidly, the result is a high rate of inflation. Harcourt Brace & Company ...
... Theory of Money Changes in the money supply which induce parallel changes in the nominal value of output are also reflected in changes in the price level. When the Fed increases the money supply rapidly, the result is a high rate of inflation. Harcourt Brace & Company ...
FEEDBACK MECHANISMS IN THE FINANCIAL SYSTEM: A
... The objective of this paper is to explore literature on various theoretical systemic feedback mechanisms and to provide a direction toward a unifying theoretical framework of systemic feedbacks within financial systems. This review will contribute three main results: first, establish a consistent ...
... The objective of this paper is to explore literature on various theoretical systemic feedback mechanisms and to provide a direction toward a unifying theoretical framework of systemic feedbacks within financial systems. This review will contribute three main results: first, establish a consistent ...
Dollarization of the Zimbabwean Economy: Cure or Curse
... October 2008, November 2008, December 2008). However, if you convert these incomes to the prevailing exchange rates vis-a-viz the US$ during that time, it becomes evident that the teachers were earning next to nothing, because their income was less than US$ 10 for each of the three months. The Octob ...
... October 2008, November 2008, December 2008). However, if you convert these incomes to the prevailing exchange rates vis-a-viz the US$ during that time, it becomes evident that the teachers were earning next to nothing, because their income was less than US$ 10 for each of the three months. The Octob ...
Fund Transfer Pricing in a Commercial Bank
... largest component of bank’s profits, is received on loans and paid on deposits. Without FTP it would seem that all deposits generate only costs, whereas they’re the source of funding necessary for giving loans. As a consequence, customers and business units that only deposit funds without taking loa ...
... largest component of bank’s profits, is received on loans and paid on deposits. Without FTP it would seem that all deposits generate only costs, whereas they’re the source of funding necessary for giving loans. As a consequence, customers and business units that only deposit funds without taking loa ...
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... rather than encouraged the development of the financial sector. Recently, these concerns have been compounded by a growing feeling that the monetary regime that has for so long served Uganda well but the reserve money framework is proving less successful in delivering low and stable inflation as the ...
... rather than encouraged the development of the financial sector. Recently, these concerns have been compounded by a growing feeling that the monetary regime that has for so long served Uganda well but the reserve money framework is proving less successful in delivering low and stable inflation as the ...
Assessing bank competition for consumer loans
... loans, pawn shop loans, or auto title loans (Caskey, 2005; Stegman, 2007). Suppliers of nonbank consumer loans justify their higher price by noting the higher credit risk and nonpayment experience they incur and, as a result, suggest they do not make excessive profits given the risks they face. This ...
... loans, pawn shop loans, or auto title loans (Caskey, 2005; Stegman, 2007). Suppliers of nonbank consumer loans justify their higher price by noting the higher credit risk and nonpayment experience they incur and, as a result, suggest they do not make excessive profits given the risks they face. This ...
Assets Liabilities Management In Islamic Banking
... Islamic are different and depend on the type of collaterals, mortgage or nonmortgage and cash or non-cash. So for calculating the allowances for bad debts and determining credit risk measure are considered by ALCO. The standard measure for allowances for bad debts (sum of public and specific reserv ...
... Islamic are different and depend on the type of collaterals, mortgage or nonmortgage and cash or non-cash. So for calculating the allowances for bad debts and determining credit risk measure are considered by ALCO. The standard measure for allowances for bad debts (sum of public and specific reserv ...
Holding Excess Foreign Reserves Versus Infrastructure Finance
... enhance their management? How much can be invested for financing infrastructure in Africa? The present study highlights that in reserves management, the two goals of liquidity and return on investment can be reconciled by a more strategic targeting of the reserve portfolio to meet the demands of the ...
... enhance their management? How much can be invested for financing infrastructure in Africa? The present study highlights that in reserves management, the two goals of liquidity and return on investment can be reconciled by a more strategic targeting of the reserve portfolio to meet the demands of the ...
Money Growth and Inflation THE CLASSICAL THEORY OF
... Velocity and the Quantity Equation • The Equilibrium Price Level, Inflation Rate, and the Quantity Theory of Money • The velocity of money is relatively stable over time. • When the Fed changes the quantity of money, it causes proportionate changes in the nominal value of output (P × Y). • Because m ...
... Velocity and the Quantity Equation • The Equilibrium Price Level, Inflation Rate, and the Quantity Theory of Money • The velocity of money is relatively stable over time. • When the Fed changes the quantity of money, it causes proportionate changes in the nominal value of output (P × Y). • Because m ...
Banking system control, capital allocation, and economy performance
... 1943; Murphy, Shleifer, and Vishny, 1989) using ‘‘tunneling’’ (Johnson, La Porta, Lopez-De-Silanes, and Shleifer, 2000) to coordinate capital investment and orchestrate cross-industry subsidies, as an idealized central planner would. All else equal, these explanations point to more efficient capital ...
... 1943; Murphy, Shleifer, and Vishny, 1989) using ‘‘tunneling’’ (Johnson, La Porta, Lopez-De-Silanes, and Shleifer, 2000) to coordinate capital investment and orchestrate cross-industry subsidies, as an idealized central planner would. All else equal, these explanations point to more efficient capital ...
money affects real gdp - Choose your book for Principles of
... • Sir Thomas Gresham, a 16th century merchant to the English crown, observed that bad money drives out good. ...
... • Sir Thomas Gresham, a 16th century merchant to the English crown, observed that bad money drives out good. ...
the conduct of monetary policy in uganda
... regime that has for so long served Uganda well – the reserve money framework -- is proving less successful in delivering low and stable inflation as the capital account has becomes more open. I argue that while some aspects of this critique are valid they need to be put in context. Depending on the ...
... regime that has for so long served Uganda well – the reserve money framework -- is proving less successful in delivering low and stable inflation as the capital account has becomes more open. I argue that while some aspects of this critique are valid they need to be put in context. Depending on the ...
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... from bank supervisors [Peek, Rosengren, and Tootell (1998)]. There is also some cooperation between different central banks that may further enhance this informational advantage. In addition, central banks usually have both the incentives and the means to develop superior forecasting capacities. The ...
... from bank supervisors [Peek, Rosengren, and Tootell (1998)]. There is also some cooperation between different central banks that may further enhance this informational advantage. In addition, central banks usually have both the incentives and the means to develop superior forecasting capacities. The ...
The functions of money and the demand for liquidity
... The equalisation of yields is brought about by variations of the prices of capitalassets relatively to the prices of money-loans. Thus, the interest rate, determined by the supply of money and the economy’s propensity to hoard, affects the prices of capital-assets which also depend on their expected ...
... The equalisation of yields is brought about by variations of the prices of capitalassets relatively to the prices of money-loans. Thus, the interest rate, determined by the supply of money and the economy’s propensity to hoard, affects the prices of capital-assets which also depend on their expected ...
Political ideology, quality at entry and the success of economic
... their ideological position (e.g. Glazer and Grofman, 1989) to studies indicating that in certain circumstances policy switches occur, i.e. the implementation of policies by parties whose ideological position runs against such policies. For instance, Cukierman and Tommasi (1998) show that under certa ...
... their ideological position (e.g. Glazer and Grofman, 1989) to studies indicating that in certain circumstances policy switches occur, i.e. the implementation of policies by parties whose ideological position runs against such policies. For instance, Cukierman and Tommasi (1998) show that under certa ...
Do we need big banks? Evidence on performance, strategy and
... similarly find that failed banks exhibit declining proportions of uninsured deposits to total deposits prior to failure. Billet, Garfinkel, and O’Neal (1998) conclude that market discipline by uninsured depositors may be ineffective, as riskier banks are able to increase their use of insured deposit ...
... similarly find that failed banks exhibit declining proportions of uninsured deposits to total deposits prior to failure. Billet, Garfinkel, and O’Neal (1998) conclude that market discipline by uninsured depositors may be ineffective, as riskier banks are able to increase their use of insured deposit ...
Cyclicality of Credit Supply: Firm Level Evidence
... commercial paper), and 12,782 firm-quarters (6.0%) by the narrower definition (term loans and bonds only) that we use as baseline. In a third of all firm-quarters with debt issuance, debt issues are new loans by the narrower definition, and, by the broader definition, in two thirds (the difference i ...
... commercial paper), and 12,782 firm-quarters (6.0%) by the narrower definition (term loans and bonds only) that we use as baseline. In a third of all firm-quarters with debt issuance, debt issues are new loans by the narrower definition, and, by the broader definition, in two thirds (the difference i ...
