TY  - UNPD
A1  - Faure, Salomon
A1  - Gersbach, Hans
T1  - Money creation and destruction
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 555
N2  - We study money creation and destruction in today’s monetary architecture and examine the impact of monetary policy and capital regulation in a general equilibrium setting. There are two types of money created and destructed: bank deposits, when banks grant loans to firms or to other banks and central bank money, when the central bank grants loans to private banks. We show that equilibria yield the first-best level of money creation and lending when prices are flexible, regardless of the monetary policy or capital regulation. When prices are rigid, we identify the circumstances in which money creation is excessive or breaks down and the ones in which an adequate combination of monetary policy and capital regulation can restore efficiency.
T3  - CFS working paper series - 555 
KW  - money creation
KW  - bank deposits
KW  - capital regulation
KW  - zero lower bound
KW  - monetary policy
KW  - price rigidities
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/42073
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-420734
UR  - https://ssrn.com/abstract=2866473
IS  - First Version: September 2014, This Version: October 2016
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -