IDEAS home Printed from https://ideas.repec.org/a/col/000107/008321.html
   My bibliography  Save this article

On The Social Value Of Banks

Author

Listed:
  • GEORGE MCCANDLESS

    ()

Abstract

I compare the utility of individuals in an economywith and without banks. To make the comparisoninteresting, the economy without banks has cashin-advance money that the individuals use forconsumption and for precautionary (emergency)purposes and that firms use to pay their wage bill. Inthe economy with banks, the precautionary funds aredeposited in banks, which lend this money to firmsfor working capital. In these economies output isgenerally higher, people have higher utility and livelonger. Also, the price level is usually higher.

Suggested Citation

  • George Mccandless, 2010. "On The Social Value Of Banks," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, vol. 28(61), pages 106-133, August.
  • Handle: RePEc:col:000107:008321
    as

    Download full text from publisher

    File URL: http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/espe_061-3.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ronnie Phillips, 1992. "The 'Chicago Plan' and New Deal Banking Reform," Economics Working Paper Archive wp_76, Levy Economics Institute.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    wage; money; interest rates; financialinstitutions and services.;

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • G2 - Financial Economics - - Financial Institutions and Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000107:008321. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Espe). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.