On the complementarity of money and credit

B-Tier
Journal: European Economic Review
Year: 2010
Volume: 54
Issue: 5
Pages: 733-741

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I propose a model where agents choose to conduct their business using two payment instruments, money and bilateral credit. A friction in the timing of transactions rationalizes the use of both instruments and makes it optimal for agents to use money as a means of settlement for credit. Money and credit complement each other. With anticipated inflation, complementarity implies that the credit to money ratio decreases with inflation.

Technical Details

RePEc Handle
repec:eee:eecrev:v:54:y:2010:i:5:p:733-741
Journal Field
General
Author Count
1
Added to Database
2026-01-25