@article{202891,
  keywords = {Money, Credit},
  author = {Markus K. Brunnermeier and Jonathan Payne},
  title = {Strategic Money and Credit Ledgers},
  abstract = {<p>Can a digital {\textquotedblleft}bills-of-exchange{\textquotedblright} system be established? We show that a sufficiently dominant trading platform can and will set up a ledger that allows firms to purchase inputs by issuing tradable IOUs, which then serve as a savings vehicle and medium of exchange. The platform can incentivize the use of the ledger, and enforce repayment, by threatening exclusion from future trade, something that a stand-alone ledger cannot. In GE this lowers the equilibrium interest rate, but also increases the platform{\textquoteright}s rent extraction. A public payment alternative that is competitive, but not too competitive, improves output and consumption.</p>},
}