E41 - Demand for Money

• How Do You Pay? The Role of Incentives at the Point-of-Sale

  Staff Working Paper 2011-23 Carlos Arango, Kim Huynh, Leonard Sabetti

  This paper uses discrete-choice models to quantify the role of consumer socioeconomic characteristics, payment instrument attributes, and transaction features on the probability of using cash, debit card, or credit card at the point-of-sale.

  Content Type(s): Staff research, Staff working papers Topic(s): Bank notes, Econometric and statistical methods, Financial services JEL Code(s): C, C3, C35, C8, C83, E, E4, E41

• 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