Collateral secured loans in a monetary economy
نویسندگان
چکیده
منابع مشابه
Collateral secured loans in a monetary economy
This paper presents a microfounded model of money where durable assets serve as a guarantee to repay consumption loans. We establish steady state equilibria where money and bank credit coexist. In such an equilibrium, a larger investment in durable capital relaxes the borrowing constraint faced by consumers and thus provides a way to mitigate their costs of money holdings. We show that the occu...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 2008
ISSN: 0022-0531
DOI: 10.1016/j.jet.2008.02.002