E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit

• Money and Costly Credit

  Staff Working Paper 2011-7 Mei Dong

  I study an economy in which money and credit coexist as means of payment and the settlement of credit requires money. The model extends recent developments in microfounded monetary theory to address the choice of payment methods and the effects of inflation. Whether a buyer uses money or credit depends on the fixed cost of credit and the inflation rate.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Inflation: costs and benefits JEL Code(s): E, E4, E41, E5, E50

• Counterfeit Quality and Verification in a Monetary Exchange

  Staff Working Paper 2011-4 Ben Fung, Enchuan Shao

  Recent studies on counterfeiting in a monetary search framework show that counterfeiting does not occur in a monetary equilibrium. These findings are inconsistent with the observation that counterfeiting of bank notes has been a serious problem in some countries.

  Content Type(s): Staff research, Staff working papers Topic(s): Bank notes JEL Code(s): D, D8, D82, D83, E, E4, E42, E5, E50