Limited Commitment and the Demand for Money

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Limited Commitment and the Demand for Money

JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift)

ID	4491447
Author(s)	Berentsen, Aleksander; Huber, Samuel; Marchesiani, Alessandro
Author(s) at UniBasel	Berentsen, Aleksander
Year	2018
Title	Limited Commitment and the Demand for Money
Journal	The economic journal
Volume	128
Number	610
Pages / Article-Number	1128-1156
Abstract	Understanding money demand is important for our comprehension of macroeconomics and monetary policy. Its instability has made this a challenge. Common explications for the instability are financial regulations and financial innovations that shift the money demand function. We provide a complementary view by showing that a model where borrowers have limited commitment can significantly improve the fit between the theoretical money demand function and the data. Limited commitment can also explain why the ratio of credit to M1 is currently so low, despite that nominal interest rates are at their lowest recorded levels.
Publisher	Blackwell
ISSN/ISBN	0013-0133
URL	https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecoj.12449
edoc-URL	https://edoc.unibas.ch/67243/
Full Text on edoc	No
Digital Object Identifier DOI	10.1111/ecoj.12449
ISI-Number	WOS:000431508100007
Document type (ISI)	Article

15/05/2024

Research Database / FORSCHUNGSDATENBANK