How should governments create liquidity? ?

• 成果类型: Article
• 署名作者: Jackson, Timothy; Pennacchi, George
• 署名单位: University of Liverpool; University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2021.01.001
• 发表日期: 2021
• 页码: 281-295
• 关键词: Liquidity creation; government debt; Deposit insurance

摘要

Safe assets (liquidity) can be created by an economy's private banking system and also by its government. Our model shows that some banks create liquidity with low debt and efficient loan monitoring while other banks use high, tranched debt and inefficient loan monitoring. Government liquidity can also differ, either by the government directly issuing debt or by insuring bank deposits. Directly issued government debt allows for greater private liquidity, more efficient bank lending, and greater welfare for savers. Government insurance of bank deposits crowds out private liquidity but leads to greater bank lending and profits.