Safe Assets as Commodity Money
| Autor: | Benjamin S. Kay, Maya Eden |
|---|---|
| Rok vydání: | 2015 |
| Předmět: |
Economics and Econometrics
Working capital Commodity money Monetary economics Intrinsic value (finance) Accounting ComputerApplications_MISCELLANEOUS 0502 economics and business Economics Private money 050207 economics Medium of exchange Social optimum 050208 finance Return on assets 05 social sciences Market efficiency Liquidity crisis Monetary system Liquidity risk Liquidity premium Market liquidity Fixed asset Business Accounting liquidity Finance |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.2695517 |
| Popis: | This paper presents a model in which safe assets are systemic because they are the medium of exchange in risky assets. It connects the literature from banking and finance on safe assets to the monetary literature on alternative monetary systems involving commodity money, interest bearing money, and private money creation. Because safe assets have intrinsic value, changes in their supply lead to changes in market efficiency. Additionally, because safe assets are costly to produce, there is overproduction of safe assets relative to the social optimum. When the model is calibrated to plausible liquidity premiums the resulting inefficiencies are not large. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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