We analyse and present the current mainstream research on banking efficiency by
assessing recent articles from major finance journals. We examine 87 papers that were …

Can competition among privately-issued fiat currencies work? Only sometimes and partially.
To show this, we build a model of competition among privately-issued fiat currencies. A …

A model of money, credit, and banking is constructed in which the differential pledgeability of
collateral and the scarcity of collateralizable wealth lead to a term premium–an upward …

We develop a micro-founded monetary model to inquire the role of a privately provided e-
money instrument for household consumption smoothing and welfare. Different from fiat …

Current generations of cryptocurrencies are not money, but future ones may be. While
Bitcoin performs poorly as a store of value, it is actually on par with the Venezuelan bolívar …

Are financial intermediaries–in particular, banks–inherently unstable or fragile, and if so,
why? We address this theoretically by analyzing whether model economies with financial …

In this paper we argue that if monetary policy has insufficient deflation, private agents have
incentives to set up alternative payment systems like fractionally backed bank deposits …

In a world where the means of exchange is convertible into the numeraire consumption
good at a fixed rate, no one wants to hold money over time–and due to convertibility there is …

We study a model where limited liability and enforcement permits bank owners to shift the
risk of their asset portfolios to the depositors. Incentive-compatible equilibria require the …

Banks are special in that their liabilities are widely accepted as a means of payment, thereby
often needed by real sectors to obtain resources. This paper studies this interaction between …