Money creation and financial instability: An agent-based credit network approach

Article, Research, Preprint OPEN
Lengnick, Matthias ; Krug, Sebastian ; Wohltmann, Hans-Werner (2013)
  • Publisher: Kiel: Kiel University, Department of Economics
  • Journal: Economics: The Open-Access, Open-Assessment E-Journal, volume 7, pages 1-44
  • Related identifiers: doi: 10.5018/economics-ejournal.ja.2013-32
  • Subject: E51 | C63 | financial instability | financial instability,agent-based macroeconomics,stock-flow consistency,disequilibrium analysis,Basel II | E42 | Basel II | G01 | endogenous money | agent-based macroeconomics | stock-flow consistency | Finanzmarktkrise | disequilibrium analysis | Geldschöpfung | financial instability,endogenous money,agent-based macroeconomics,stock-flow consistency,disequilibrium analysis | Agentenbasierte Modellierung | Neukeynesianische Makroökonomik | Finanzkrise | Theorie
    • jel: jel:E42 | jel:E51 | jel:G01 | jel:C63
      ddc: ddc:330

The authors develop a simple agent-based and stock flow consistent model of a monetary economy. Their model is well suited to explain money creation along the lines of mainstream theory. Additionally it uncovers a potential instability that follows from a maturity misma... View more
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