Money and Contracts
نویسنده
چکیده
This paper presents a novel interpretation of the fact that high nominal interest rates accompany low levels of real GNP. It constructs a model in which money and bonds are both held as a result of legal restrictions on the banking system. Open market operations may increase the equilibrium rate of interest and raise the cost of credit. This increase in the cost of credit causes firms to write labour contracts in which layoffs occur more frequently. The nature of optimal labour contracts is derived explicitly from assumptions about the information that is available to firms and to workers.
منابع مشابه
The time value of money implications of continuing care retirement community type-a contracts
Continuing Care Retirement Communities (CCRCs) are an attractive alternative for those seeking integrated single-site, multi-stage retirement living solutions. CCRCs vary significantly in contractual terms with the most comprehensive being “Type-A”. Under such contracts, a potential resident pays a substantial up-front entrance fee which then guarantees capped expenses over the long-term if the...
متن کاملIntroducing the Time Value of Money in a Non-consignment Vendor Managed Inventory Model
Vendor managed inventory (VMI) is an integrated approach for buyer–vendor coordination, according to which the vendor (supplier or manufacturer) decides on the appropriate buyer’s (retailer’s) inventory levels. The time value of money has not traditionally been considered in evaluating VMI supply chain’s total inventory cost in any studies up to now. Therefore, in the present study a new model ...
متن کاملCrypto Currencies and the Blockchain Technology: An Evolutionary Review of Money and the Payment Systems
In this paper we utilize the main findings from the recent literature to set the economic foundation for the existence of money, its modern interpretation as “memory” (Chokerlakota 1998) and how the Blockchain technology has empowered crypto currencies to perform this role in the information age. To locate the issue in a historical perspective and in line with this strand of thought, we consid...
متن کاملEthical Analysis of Late Payment Penalties
Background: Recognizing the causes of non-current receivables can well prevent the largest deviation in the allocation of resources as the blocking of resources in a particular sector and their lack of proper distribution. Inserting the condition of late payment penalty is one of the legal solutions to deal with late payment, which is included in banking contracts. In this article, the status o...
متن کاملAnalysis of Supplementary Banking Contracts in Imamieh Jurisprudence and Law
Whe the Bank is obliged to apply certain contracts as specified in the Law on Banking Operations to finance its economic activities, first to attract monetary resources as investment funds from the community and then as Advocate applicants from these resources. In note 23 of the Law on Continuous Improvement of the Business Environment Act, 2011, the Central Bank is required to regulate uniform...
متن کامل