Money creation and financial instability: An agent-based credit network approach
Article, Research, Preprint
- Publisher: Kiel: Kiel University, Department of Economics
Economics: The Open-Access, Open-Assessment E-Journal,
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
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...