Liquidity, money creation and destruction, and the returns to banking
成果类型：
Article
署名作者：
Cavalcanti, RD; Erosa, A; Temzelides, T
署名单位：
Getulio Vargas Foundation; University of Toronto; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
刊物名称：
INTERNATIONAL ECONOMIC REVIEW
ISSN/ISSBN：
0020-6598
发表日期：
2005
页码：
675-706
关键词：
摘要：
We build on our earlier model of money in which bank liabilities circulate as a medium of exchange. We investigate optimal bank behavior and the resulting provision of liquidity under a range of central bank regulations. In our model, banks issue inside money under fractional reserves, facing the possibility of excess redemptions. Banks consider the float resulting from money creation and make reserve-management decisions that affect aggregate liquidity conditions. Numerical examples demonstrate positive bank failure rates when returns to banking are low. Central bank interventions may improve banks' returns and welfare through a reduction in bank failure.