Money and credit : theory and applications /

Money and credit : theory and applications /

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Bibliographic Details
Author / Creator:	Wang, Liang, author.
Imprint:	[Washington, District of Columbia] : International Monetary Fund, 2017. ©2017
Description:	1 online resource (55 pages) : illustrations, tables.
Language:	English
Series:	IMF working paper ; WP/17/14 IMF working paper ; WP/17/14.
Subject:	Econometric models. Economic forecasting. Econometric models. Economic forecasting.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/11705102

Hidden Bibliographic Details
Other authors / contributors:	Wright, Randall, author. Liu, Lucy Qian, author.
ISBN:	1475577729 9781475577723 1475572336 9781475572339
Summary:	We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Buyers can use cash or credit, with the former (latter) subject to the inflation tax (transaction costs). Frictions that make the choice of payment method interesting also imply equilibrium price dispersion. We deliver closed-form solutions for money demand. We then show the model can simultaneously account for the price-change facts, cash-credit shares in micro payment data, and money-interest correlations in macro data. We analyze the effects of inflation on welfare, price dispersion and markups. We also describe nonstationary equilibria as self-fulfilling prophecies, which is standard, except here it entails dynamics in the price distribution.
Other form:	Print version: Wang, Liang Money and Credit: Theory and Applications Washington, D.C. : International Monetary Fund,2017 9781475572339
Standard no.:	10.5089/9781475572339.001

Description
Summary:	We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Buyers can use cash or credit, with the former (latter) subject to the inflation tax (transaction costs). Frictions that make the choice of payment method interesting also imply equilibrium price dispersion. We deliver closed-form solutions for money demand. We then show the model can simultaneously account for the price-change facts, cash-credit shares in micro payment data, and money-interest correlations in macro data. We analyze the effects of inflation on welfare, price dispersion and markups. We also describe nonstationary equilibria as self-fulfilling prophecies, which is standard, except here it entails dynamics in the price distribution.
Physical Description:	1 online resource (55 pages) : illustrations, tables.
ISBN:	1475577729 9781475577723 1475572336 9781475572339