Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67493
Authors: 
Lengnick, Matthias
Krug, Sebastian
Wohltmann, Hans-Werner
Year of Publication: 
2012
Series/Report no.: 
Economics Discussion Papers 2012-61
Abstract: 
The authors pick up the standard textbook approach of money creation and develop a simple agent-based alternative. They show that their model is well suited to explain the endogenous creation of money. Although more general, their model still contains the standard results as a limiting case. The authors also uncover a potential instability that is hidden in the standard approach but easily recognized within a strict individual-based and stock-flow consistent version. They show in detail how individual interactions build up systemic risk and how banking crises are triggered by the maturity mismatch of different cash-flows and spread by the depreciation of non-performing loans (e.g. interbank or government debt).
Subjects: 
financial instability
endogenous money
agent-based macroeconomics
stock-flow consistency
disequilibrium analysis
JEL: 
E42
E51
C63
G01
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type: 
Working Paper

Files in This Item:
File
Size
654.97 kB





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