Credit cards and interest rates: theory and institutional factors

Robert F. Stauffer

Journal of Post Keynesian Economics, 2003, vol. 26, issue 2, 289-302

Abstract: Keynesian economics emphasizes that money demand will fall as credit card users economize on transactions balances. This perspective overlooks the fact that credit card use is an increase in credit demand. Loanable funds analysis, along with an emphasis on institutional arrangements, can be utilized to demonstrate that this increase in credit demand is greater than the increase in credit supply associated with a decline in money demand. Any resulting upward pressure on interest rates will encourage an accommodative Federal Reserve policy.

Date: 2003
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/01603477.2003.11051390 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:postke:v:26:y:2003:i:2:p:289-302

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MPKE20

DOI: 10.1080/01603477.2003.11051390

Access Statistics for this article

More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().