| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5060056 | Economics Letters | 2012 | 4 Pages |
Abstract
⺠The Friedman Rule (FR) is often found to be optimal in monetary models. ⺠However at the FR, banks are found to play no role. ⺠I show that economies of scale (ES) in banking are important for this result. ⺠The welfare gains from disinflation are much higher under banking if ES are high. ⺠Banks can still play an important role in resource allocation at the Friedman rule.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Edgar A. Ghossoub,