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

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

Label
Money, financial stability and efficiency
Title
Money, financial stability and efficiency
Statement of responsibility
Franklin Allen, Elena Carletti and 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
  • European University Institute
Series statement
  • EUI working papers. ECO
  • EUI papers
Series volume
2011/04
http://library.link/vocab/subjectName
  • Financial crises
  • Interbank market
  • Liquidity (Economics)
  • Banks and banking
Label
Money, financial stability and efficiency, Franklin Allen, Elena Carletti and Douglas Gale
Link
http://hdl.handle.net/1814/15645
Instantiates
Publication
Bibliography note
Includes bibliographical references (pages 38-40) and index
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
FIEb16969686
Dimensions
30 cm.
Extent
40 pages
Media category
unmediated
Media MARC source
rdamedia.
Media type code
  • n
System control number
(OCoLC)772961823
Label
Money, financial stability and efficiency, Franklin Allen, Elena Carletti and Douglas Gale
Link
http://hdl.handle.net/1814/15645
Publication
Bibliography note
Includes bibliographical references (pages 38-40) and index
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
FIEb16969686
Dimensions
30 cm.
Extent
40 pages
Media category
unmediated
Media MARC source
rdamedia.
Media type code
  • n
System control number
(OCoLC)772961823

Library Locations

    • Badia FiesolanaBorrow it
      Via dei Roccettini 9, San Domenico di Fiesole, 50014, IT
      43.803074 11.283055
Processing Feedback ...