A model of the market for bank credit: The case of Germany

Peter Bofinger, Daniel Maas and Mathias Ries

No 98, W.E.P. - Würzburg Economic Papers from University of Würzburg, Department of Economics

Abstract: Since the financial crisis there exists a widespread discussion about the role of banking in a monetary economy. We contribute to this discussion by presenting a basic model of the banking sector which models banks as originators of credit without owning pre-collected savings or reserves beforehand. Additionally, we estimate an empirical model of the German credit market for non-financial corporations in a disequilibrium framework. Empirically, we detect a significant role for the variables that are chosen on the basis of our price-theoretic model.

Keywords: Credit; Money Supply; Money Multiplier (search for similar items in EconPapers)
JEL-codes: E51 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-ban, nep-mac and nep-mon
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:wuewep:98

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