The payment mechanisms and liquidity effects |
| |
Authors: | Yan Li Wayne Carroll |
| |
Institution: | Department of Economics, University of Wisconsin-Eau Claire, 105 Garfield Ave. P.O. Box 4004, Eau Claire, WI 54702, USA |
| |
Abstract: | A general equilibrium model with multiple means of payment in segmented markets is constructed to study the liquidity effects. It is shown that, under certain conditions, stored value – money issued by private entrepreneurs weakens, but does not completely eliminate the liquidity effects that exist when stored value is prohibited. The Friedman rule can be optimal in the regime with floating stored value. The impact of monetary policy now depends not only on the monetary intervention of the central bank, but also on the quantity of the outstanding private money and its velocity. |
| |
Keywords: | JEL classification: E4 E5 |
本文献已被 ScienceDirect 等数据库收录! |
|