EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/19081
  
Title:Money, credit and banking PDF Logo
Authors:Berentsen, Aleksander
Camera, Gabriele
Waller, Christopher Jude
Issue Date:2005
Series/Report no.:CESifo working papers 1617
Abstract: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.
Subjects:money
credit
rationing
banking
JEL:D9
E5
E4
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
cesifo1_wp1617.pdf371.25 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/19081

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.