The Resource Money, financial stability and efficiency, Franklin Allen, Elena Carletti, Douglas Gale

Money, financial stability and efficiency, Franklin Allen, Elena Carletti, Douglas Gale

Label
Money, financial stability and efficiency
Title
Money, financial stability and efficiency
Statement of responsibility
Franklin Allen, Elena Carletti, Douglas Gale
Creator
Contributor
Author
Subject
Language
eng
Summary
Most analyses of banking crises assume that banks use real contracts. However, in practice contracts are nominal and this is what is assumed here. We consider a standard banking model with aggregate return risk, aggregate liquidity risk and idiosyncratic liquidity shocks. We show that, with non-contingent nominal deposit contracts, the first-best efficient allocation can be achieved in a decentralized banking system. What is required is that the central bank accommodates the demands of the private sector for fiat money. Variations in the price level allow full sharing of aggregate risks. An interbank market allows the sharing of idiosyncratic liquidity risk. In contrast, idiosyncratic (bank-specific) return risks cannot be shared using monetary policy alone; real transfers are needed
Member of
Cataloging source
IT-FiEUI
http://library.link/vocab/creatorDate
1956-
http://library.link/vocab/creatorName
Allen, Franklin
Index
no index present
Literary form
non fiction
http://library.link/vocab/relatedWorkOrContributorName
  • Carletti, Elena
  • Gale, Douglas
Series statement
  • EUI working papers. ECO
  • EUI papers
Series volume
2012/16
http://library.link/vocab/subjectName
  • Financial crises
  • Interbank market
  • Liquidity (Economics)
  • Banks and banking
Label
Money, financial stability and efficiency, Franklin Allen, Elena Carletti, Douglas Gale
Link
http://hdl.handle.net/1814/21678
Instantiates
Publication
Carrier category
volume
Carrier category code
  • nc
Carrier MARC source
rdacarrier.
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent.
Control code
FIEb17098762
Dimensions
30 cm.
Extent
43 pages
Media category
unmediated
Media MARC source
rdamedia.
Media type code
  • n
Other physical details
illustrations
System control number
(OCoLC)811253171
Label
Money, financial stability and efficiency, Franklin Allen, Elena Carletti, Douglas Gale
Link
http://hdl.handle.net/1814/21678
Publication
Carrier category
volume
Carrier category code
  • nc
Carrier MARC source
rdacarrier.
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent.
Control code
FIEb17098762
Dimensions
30 cm.
Extent
43 pages
Media category
unmediated
Media MARC source
rdamedia.
Media type code
  • n
Other physical details
illustrations
System control number
(OCoLC)811253171

Library Locations

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