Outside versus inside bonds: a Modigliani-Miller type result for liquidity constrained economies

DOI10.1016/J.JET.2011.06.016MaRDI QIDQ643259zbMATH OpenOpenAlexFDO

Authors Aleksander Berentsen, Christopher Waller

Publication date 28 October 2011

Published in Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.jet.2011.06.016

zbMATH Keywords

searchliquiditymonetary policyfinancial markets

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64) Portfolio theory (91G10) Applications of statistical and quantum mechanics to economics (econophysics) (91B80)

Recommendations

• A model in which outside and inside money are essential
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Cites work

• A Difficulty with the Optimum Quantity of Money
• A Divisible Search Model of Fiat Money
• A Model of Money and Credit, with Application to the Credit Card Debt Puzzle
• Bubbles and Self-Enforcing Debt
• Collateral secured loans in a monetary economy
• Currency and Credit are Equivalent Mechanisms
• Efficiency, Equilibrium, and Asset Pricing with Risk of Default
• Essential interest-bearing money
• Liquidity Constrained Markets Versus Debt Constrained Markets
• MONEY AND NOMINAL BONDS
• Money and dynamic credit arrangements with private information
• Money, credit and banking
• Societal benefits of illiquid bonds.
• Some results on the optimality and implementation of the Friedman rule in the search theory of money

Cited in

(14)

• Asymmetric information in frictional markets for liquidity: collateralized credit vs asset sale
• A microfounded approach to currency substitution and government policy
• Liquidity and private information in asset markets: to signal or not to signal
• A model in which outside and inside money are essential
• Liquidity and asset prices in a monetary model with OTC asset markets
• Frictional asset markets and the liquidity channel of monetary policy
• Liquidity premiums on government debt and the fiscal theory of the price level
• Comments on ``Frictional capital reallocation. I: Ex ante heterogeneity by R. Wright, S. X. Xiao, and Y. Zhu
• The redistributive effects of inflation and the shape of money demand
• Intermediary cost and coexistence puzzle
• Safe assets, credit provision and debt management
• Degreasing the wheels of finance
• On the optimal quantity of liquid bonds
• The role of trading frictions in financial markets

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