Quotes from “Transaction Asset Shortages”

By David Beckworth & Josh Hendrickson (2018)

• Changes in the degree of resalability are the important source of changes in [the money] multiplier.#
  Business cycleMoney
• What separates the “resalability” of financial liabilities is the degree of commitment… Financial liabilities with a multilateral commitment are capable of circulating as media of exchange.#
  FinanceMoney
• All financial intermediaries essentially serve the same function in turning illiquid assets into liabilities.#
  Finance