Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/172466
Authors: 
Faure, Salomon A.
Gersbach, Hans
Year of Publication: 
2017
Series/Report no.: 
CFS Working Paper Series 587
Abstract: 
We establish a benchmark result for the relationship between the loanablefunds and the money-creation approach to banking. In particular, we show that both processes yield the same allocations when there is no uncertainty and thus no bank default. In such cases, using the much simpler loanablefunds approach as a shortcut does not imply any loss of generality.
Subjects: 
money creation
bank deposits
capital regulation
monetary policy
loanable funds
JEL: 
D50
E4
E5
G21
Document Type: 
Working Paper

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