This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Money Injections in a Neoclassical Growth Model

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Ertz, Guy () (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
Portier, Franck (CEPREMAP; CREST)

Additional information is available for the following registered author(s):

Abstract

This paper analyzes the effects and transmission mechanism related to the alternative injection channels - i.e to households versus a financial intermediary - in a neoclassical growth model with reserve requirements and money multiplier effects. The money injected directly to a financial intermediaries is not subject to reserve requirements while deposits are. As suggested in Fuerst [1994], we show that it does matter what injection channel is used as long as reserve requirements on saving deposits are nonzero. However, it matters only for a scale factor and that the transmission mechanism of money are identical. There are no additional tax avoidance effects that would stimulate intermediation when money is injected directly to the financial intermediary. The model allows for the definition of a set of monetary aggregates, from the most narrow (nonborrowed reserves) to the largest (M1). There is therefore a potential room to understand why different aggregates display different cyclical pattern.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.ires.ucl.ac.be/DP/IRES_DP/9818.pdf
File Format: application/pdf
File Function:
Download Restriction: no
File URL: http://www.ires.ucl.ac.be/DP/IRES_DP/9818.ps
File Format: application/postscript
File Function:
Download Restriction: no
File URL: http://www.ires.ucl.ac.be/DP/IRES_DP/9818.zip
File Format: application/postscript
File Function:
Download Restriction: no

Publisher Info
Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Discussion Paper with number 1998018.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 15
Date of creation: 00 Jul 1998
Date of revision:
Handle: RePEc:ctl:louvir:1998018

Contact details of provider:
Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)
Fax: +32 10473945
Email:
Web page: http://www.uclouvain.be/econ
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Maryvonne NEYTS).

Related research
Keywords: Business Cycle Financial Intermediation Money Multiplier

Find related papers by JEL classification:
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Robert G. King & Mark W. Watson, 1995. "Money, prices, interest rates and the business cycle," Working Paper Series, Macroeconomic Issues 95-10, Federal Reserve Bank of Chicago.
    Other versions:
  2. Thomas F. Cooley & Gary D. Hansen, 1987. "The Inflation Tax in a Real Business Cycle Model," UCLA Economics Working Papers 496, UCLA Department of Economics. [Downloadable!]
    Other versions:
  3. Chari, V V & Christiano, Lawrence J & Eichenbaum, Martin, 1995. "Inside Money, Outside Money, and Short-Term Interest Rates," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(4), pages 1354-86, November. [Downloadable!] (restricted)
    Other versions:
  4. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-70, November. [Downloadable!] (restricted)
    Other versions:
  5. King, Robert G & Plosser, Charles I, 1984. "Money, Credit, and Prices in a Real Business Cycle," American Economic Review, American Economic Association, vol. 74(3), pages 363-80, June. [Downloadable!] (restricted)
  6. Lucas, Robert Jr., 1990. "Liquidity and interest rates," Journal of Economic Theory, Elsevier, vol. 50(2), pages 237-264, April. [Downloadable!] (restricted)
  7. Englund, Peter & Svensson, Lars E O, 1988. "Money and Banking in a Cash-in-Advance Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(4), pages 681-705, November. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? There are over 16000 authors registered on RePEc Author Service.

This page was last updated on 2008-9-20.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.