Date of Original Version
Abstract or Description
Benjamin Friedman raised on a previous occasion questions about the interpretation of the multiplier formulation in our assetmarket model of the money suppl process. These questions addressed the role of time deposits in this process. This short note establishes the consistency of an equilibrium model of assetmarket interaction centered on a multiplier formulation. It states the rationale of the procedure and the nature of time deposit supply function the process.
Journal of Monetary Economics , 7, 1, 129-139.