haku: @author Smith, B. D. / yhteensä: 15
viite: 10 / 15
| Tekijä: | Schreft, S. L. Smith, B. D. |
| Otsikko: | Money, banking, and capital formation |
| Lehti: | Journal of Economic Theory
1997 : MAR, VOL. 73:1, p. 157-182 |
| Asiasana: | MONEY BANKING CAPITAL MONETARY SYSTEM GROWTH MODELS |
| Kieli: | eng |
| Tiivistelmä: | This article examines an economy where monetary and financial market factors help to determine the level of capital accumulation and real development. In this economy sufficiently high rates of money growth can lead to the existence of multiple, nontrivial steady state equilibria with valued fiat money and positive nominal interest rates. Then, one steady state will have a relatively high nominal rate of interest and low capital stock. Government bonds compete with productive capital in the portfolios of banks in this equilibrium. As a result banks hold relatively little capital, and increases in the rate of money growth will induce them to hold even less. The other steady state equilibrium will have a relatively low nominal interest rate and high capital stock. Under easily satisfied conditions the equilibria is a saddle and the second is a sink. |
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