||Smith, Bruce D., d. 2002.
||Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
||A model of credit rationing based on asymmetrically informed borrowers and lenders is developed. In this context, sufficient conditions are derived for an appropriate government policy response to credit rationing to be a continuously open discount window. It is also demonstrated that such a policy can be deflationary, and that given a commitment to operate in this way, the monopoly issue of liabilities can Pareto dominate their competitive issuance.
||Government loans, Assymetric information, Jaffee-Russel model, Credit limit, and Federal lending
||D82 - Information, knowledge, and uncertainty - Asymmetric and private information, H81 - Miscellaneous issues - Governmental loans, loan guarantees, credits, and grants, and E51 - Monetary policy, central banking, and the supply of money and credit - Money supply ; Credit ; Money multipliers