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| Gillman, Max; Otto, Glenn. |
| The paper presents a theory of the demand for money that combines a special case of the shopping time exchange economy with the cash-in-advance framework. The model predicts that both higher inflation and financial innovation - that reduces the cost of credit - induce agents to substitute away from money towards exchange credit. This results in an interest elasticity of money that rises with the inflation rate rather than the constant elasticity found in standard shopping time specifications. A number of the key predictions of the banking time theory are tested using quarterly data for the US and Australia. We find cointegration empirical support for the model, with robustness checks and a comparison to a standard specification. |
| Tipo: Working or Discussion Paper |
Palavras-chave: Money demand; Cointegration; Financial technology; Banking time; O42; E13; E41; E51; Financial Economics. |
| Ano: 2003 |
URL: http://purl.umn.edu/26221 |
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| Ikhide, Sylvanus. |
| Commercial bank credit is a useful tool for promoting economic growth especially at the early stages of development. It has been observed that between 1996 and the early part of 2000, the growth rate of real credit to the private sector declined significantly in Namibia. This period coincided with observed strong demand for commercial bank loans. There has therefore been public discourse on the possibility of a restriction in the supply of credit by commercial banks and hence the occurrence of a credit crunch in the economy since commercial bank lending capacity did not fall. This paper attempts to provide some evidence in this regard by examining the main determinants of commercial bank credit in the economy and ascertaining if credit has been demand or... |
| Tipo: Journal Article |
Palavras-chave: Africa; Namibia; Credit crunch; Asymmetric information; Economic growth; Financial Economics; E51. |
| Ano: 2003 |
URL: http://purl.umn.edu/43995 |
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| Feldkord, Eva-Ulrike. |
| This paper develops a business cycle model with a financial intermediation sector. Financial wealth is defined as a predetermined state variable. Both, the additional sector of financial intermediaries and predetermination of financial wealth, affect the demand for real financial wealth. If real financial wealth also enters the monetary policy rule, the conditions for stability and uniqueness of the macroeconomic equilibrium path change fundamentally compared to standard New Keynesian business cycle models. Here, real financial wealth is interpreted as a real broad monetary aggregate. Furthermore, different interest rate rules and their consequences for stability and uniqueness of the macroeconomic equilibrium path are considered. Two monetary policy rules... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Broad money; Macroeconomic stability; Monetary policy.; Financial Economics; E41; E51; E52. |
| Ano: 2005 |
URL: http://purl.umn.edu/26343 |
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