Money and Banking. John Thorn Holdsworth

Money, credit and banking

In monetary models in which agents are subject to trading shocks there is typically an ex-post inefficiency in that some agents are holding idle balances while others are cash constrained. This inefficiency creates a role for financial intermediaries, such as banks, who accept nominal deposits and make nominal loans. We show that in general financial intermediation improves the allocation and t...

Money, Banking, and Finance

Financial Markets , Money , and Banking

■ Abstract The study of financial markets, money, and banking is largely considered the purview of economics. Yet sociologists have contributed greatly to understanding financial relations since the early history of the discipline. This review begins with an overview of classical sociological approaches to financial markets, money, and banking and then describes how research in these areas expl...

Private Money and Banking Regulation ⇤

We show that the regulation of lending practices is desirable for the optimal provision of private money. In an environment in which bankers cannot commit to repay their creditors, neither an unregulated banking system nor a form of narrow banking in which banks hold 100% in reserves can provide the socially efficient amount of money. If bankers provided such an amount, then they would prefer t...

A Simple Model of Money and Banking

This article presents a simple environment giving rise to banks that create and lend out money. We define money to be any object that circulates widely as a means of payment. In our model, this object takes the form of a fully secured and redeemable bearer bond. This monetary instrument is issued by an agent that can credibly commit to monitoring a pool of real investments; that is, this capita...