Opposite policy implications in the theory of money and banking

Detalhes bibliográficos
Autor(a) principal: Bertolai, Jefferson Donizeti Pereira
Data de Publicação: 2013
Outros Autores: Cavalcanti, Ricardo de Oliveira
Tipo de documento: Artigo
Idioma: por
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: https://periodicos.fgv.br/rbe/article/view/11706
Resumo: The recent financial crisis creates a demand for welfare-based models of financial regulation and liquidity shortages. In this paper, we review policy implications from two cornerstone models and show that they imply different responses in terms of intertemporal returns of financial liabilities. In the first case, a version of the Cavalcanti and Wallace (1999), random-matching model, monitored agents are led to promote inflation in bank-issued money. In the second case, a sequential-service version of the Diamond and Dybvig (1983) model of bank runs with insolvency, increases in long-run returns can prevent bank runs by reducing the provision of liquidity.
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spelling Opposite policy implications in the theory of money and bankinginside moneyinflationfinancial fragilityinsolvencyThe recent financial crisis creates a demand for welfare-based models of financial regulation and liquidity shortages. In this paper, we review policy implications from two cornerstone models and show that they imply different responses in terms of intertemporal returns of financial liabilities. In the first case, a version of the Cavalcanti and Wallace (1999), random-matching model, monitored agents are led to promote inflation in bank-issued money. In the second case, a sequential-service version of the Diamond and Dybvig (1983) model of bank runs with insolvency, increases in long-run returns can prevent bank runs by reducing the provision of liquidity.EGV EPGE2013-11-29info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticlesArtigosapplication/pdfhttps://periodicos.fgv.br/rbe/article/view/11706Revista Brasileira de Economia; Vol. 67 No. 4 (2013): Out-Dez; 383-401Revista Brasileira de Economia; v. 67 n. 4 (2013): Out-Dez; 383-4011806-91340034-7140reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGVporhttps://periodicos.fgv.br/rbe/article/view/11706/12450Bertolai, Jefferson Donizeti PereiraCavalcanti, Ricardo de Oliveirainfo:eu-repo/semantics/openAccess2016-12-16T12:24:35Zoai:ojs.periodicos.fgv.br:article/11706Revistahttps://periodicos.fgv.br/rbe/https://periodicos.fgv.br/rbe/oai||rbe@fgv.br1806-91340034-7140opendoar:2024-03-06T13:03:39.651429Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)true
dc.title.none.fl_str_mv Opposite policy implications in the theory of money and banking
title Opposite policy implications in the theory of money and banking
spellingShingle Opposite policy implications in the theory of money and banking
Bertolai, Jefferson Donizeti Pereira
inside money
inflation
financial fragility
insolvency
title_short Opposite policy implications in the theory of money and banking
title_full Opposite policy implications in the theory of money and banking
title_fullStr Opposite policy implications in the theory of money and banking
title_full_unstemmed Opposite policy implications in the theory of money and banking
title_sort Opposite policy implications in the theory of money and banking
author Bertolai, Jefferson Donizeti Pereira
author_facet Bertolai, Jefferson Donizeti Pereira
Cavalcanti, Ricardo de Oliveira
author_role author
author2 Cavalcanti, Ricardo de Oliveira
author2_role author
dc.contributor.author.fl_str_mv Bertolai, Jefferson Donizeti Pereira
Cavalcanti, Ricardo de Oliveira
dc.subject.por.fl_str_mv inside money
inflation
financial fragility
insolvency
topic inside money
inflation
financial fragility
insolvency
description The recent financial crisis creates a demand for welfare-based models of financial regulation and liquidity shortages. In this paper, we review policy implications from two cornerstone models and show that they imply different responses in terms of intertemporal returns of financial liabilities. In the first case, a version of the Cavalcanti and Wallace (1999), random-matching model, monitored agents are led to promote inflation in bank-issued money. In the second case, a sequential-service version of the Diamond and Dybvig (1983) model of bank runs with insolvency, increases in long-run returns can prevent bank runs by reducing the provision of liquidity.
publishDate 2013
dc.date.none.fl_str_mv 2013-11-29
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Articles
Artigos
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.fgv.br/rbe/article/view/11706
url https://periodicos.fgv.br/rbe/article/view/11706
dc.language.iso.fl_str_mv por
language por
dc.relation.none.fl_str_mv https://periodicos.fgv.br/rbe/article/view/11706/12450
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv EGV EPGE
publisher.none.fl_str_mv EGV EPGE
dc.source.none.fl_str_mv Revista Brasileira de Economia; Vol. 67 No. 4 (2013): Out-Dez; 383-401
Revista Brasileira de Economia; v. 67 n. 4 (2013): Out-Dez; 383-401
1806-9134
0034-7140
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
_version_ 1798943114869604352

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