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Monetary Policy and Banking Structure.
- Source :
- Journal of Money, Credit & Banking (John Wiley & Sons, Inc.); Sep2011, Vol. 43 Issue 6, p1109-1129, 21p, 2 Graphs
- Publication Year :
- 2011
-
Abstract
- In this paper, I examine the differences in optimal monetary policy in various banking systems. In particular, I compare two monetary economies: one with a competitive banking system and the other with a monopolistic one. In addition, the optimality of the discount window policy is considered. It is shown that the Friedman rule is the optimal monetary policy in a monopolistic banking economy, and the zero-inflation policy is optimal in a competitive banking economy under appropriate parameters. In addition, the combination of the Friedman rule and the discount window policy can achieve efficient allocation in both banking systems. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00222879
- Volume :
- 43
- Issue :
- 6
- Database :
- Complementary Index
- Journal :
- Journal of Money, Credit & Banking (John Wiley & Sons, Inc.)
- Publication Type :
- Academic Journal
- Accession number :
- 64904750
- Full Text :
- https://doi.org/10.1111/j.1538-4616.2011.00419.x