ESSAYS ON MONEY AND CREDIT IN MACROECONOMICS

The thesis consists of three independent chapters on the role of endogenous money on shadow banking and international finance. In the first chapter (Endogenous Money, Eurodollar, and the Shadow Banking System), I examine the consequence of endogenous money for banks and shadow banks at both the national and international level by considering the importance that the Eurodollar market played in the emergence of shadow banking. In the second chapter (The shadow banking system in a stock-flow consistent framework), I develop an SFC model that includes complex financial markets and important components of the shadow banking sector, which enables us to explore the relationship between core commercial banks and shadow banks. Building a complete financial sector and its interaction with the real sectors within an SFC framework allowed us to shed light on the role that shadow banking plays in the origination of credit. In the third chapter (Repo lending and its implications for the central bank monetary policy and government debt issues), I examine the transformation of money markets over the past four decades and the implications of this transformation for the implementation of monetary policy and government debt issues.