The failure of Woodford's model of the channel system in the cashless economy

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dc.contributor.authorRogers, C.
dc.date.issued2011
dc.description.abstractWoodford claims to present a cashless and frictionless model of the channel system of interest rate control. This note explains why Woodford’s frictionless model omits an essential feature of channel systems: the need for clearing e-cash balances at the central bank. Without the existence of some form of final settlement on the books of the central bank channel systems collapse. Woodford makes this conceptual error because he assumes that moneyless accounting systems of exchange can be applied to model e-cash economies.
dc.description.statementofresponsibilityColin Rogers
dc.identifier.citationJournal of Money, Credit and Banking, 2011; 43(2-3):553-563
dc.identifier.doi10.1111/j.1538-4616.2010.00385.x
dc.identifier.issn0022-2879
dc.identifier.issn1538-4616
dc.identifier.urihttp://hdl.handle.net/2440/72440
dc.language.isoen
dc.publisherOhio State Univ Press
dc.rights© 2011 The Ohio State University
dc.source.urihttps://doi.org/10.1111/j.1538-4616.2010.00385.x
dc.subjectCashless
dc.subjectfrictionless
dc.subjecte-cash
dc.subjectaccounting systems of exchange
dc.subjectchannel system
dc.titleThe failure of Woodford's model of the channel system in the cashless economy
dc.typeJournal article
pubs.publication-statusPublished

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