Credit supply driven boom-bust cycles BIS (2020-09-22)
Can shifts in the credit supply generate a boom-bust cycle similar to the one observed in the US around 2008? To answer this question, we develop a general equilibrium model that combines a rich heterogeneous agent overl .. more |
Monetary Capacity CEPR (2020-09-22)
Monetary capacity refers to a state's capacity to circulate money that is accepted by the public, whereas fiscal capacity refers to its capacity to tax. In this paper, we show both theoretically and empirically that mone .. more |
Eggs in One Basket: Security and Convenience of Digital Currencies FRB of St. Louis (2020-09-22)
Digital currencies store balances in anonymous electronic addresses. We analyze the trade-offs between safety and convenience of aggregating balances in addresses, electronic wallets and banks. In our model agents balanc .. more |