Loanable funds vs money creation in banking: a benchmark result
- We establish a benchmark result for the relationship between the loanable funds 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 loanable funds approach as a shortcut does not imply any loss of generality.
| Author: | Salomon Faure, Hans GersbachGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-437360 |
| URL: | https://ssrn.com/abstract=3084152 |
| Parent Title (English): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 587 |
| Series (Serial Number): | CFS working paper series (587) |
| Publisher: | Center for Financial Studies |
| Place of publication: | Frankfurt, M. |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2017 |
| Year of first Publication: | 2017 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2017/12/12 |
| Tag: | bank deposits; capital regulation; loanable funds; monetary policy; money creation |
| Issue: | This Version: November 2017 |
| Page Number: | 52 |
| Note: | First Version: November 2016 ; This Version: November 2017 |
| HeBIS-PPN: | 424516411 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
