Williamson, Stephen (2009): Liquidity, Financial Intermediation, and Monetary Policy in a New Monetarist Model.
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A model of monetary exchange with private financial intermediation is constructed. Claims on financial intermedaries of two types are traded in transactions: circulating notes and deposits. There can be a role for the government in supplying liqudity, and level changes in the money supply accomplished through open market operations can be nonneutral. A Friedman rule is suboptimal, due to costs of maintaining the stock of currency. The model is used to address some issues related to current monetary policy in the United States.
|Item Type:||MPRA Paper|
|Original Title:||Liquidity, Financial Intermediation, and Monetary Policy in a New Monetarist Model|
|Keywords:||Monetary policy; financial intermediation; financial crisis|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates
|Depositing User:||Stephen D Williamson|
|Date Deposited:||16. Feb 2010 00:25|
|Last Modified:||13. Feb 2013 11:24|
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