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Money and Collateral

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  • LEO FERRARIS
  • FABRIZIO MATTESINI

Abstract

This paper presents a model in which collateralized monetary loans are essential as trading instruments. Money and private debt collateralized by real assets complement each other as allocative tools in an environment with informational and commitment limitations. Public debt may play a socially beneficial role when collateral is scarce.

Suggested Citation

  • Leo Ferraris & Fabrizio Mattesini, 2020. "Money and Collateral," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(7), pages 1617-1644, October.
    • Handle: RePEc:wly:jmoncb:v:52:y:2020:i:7:p:1617-1644
    DOI: 10.1111/jmcb.12724
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    References listed on IDEAS

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