Explain the intuition behind the user cost of money

Reference no: EM13730831

1) Explain the intuition behind the "user cost" of money. Recalling the recent class articles Serletis et al (2013) and Gorton and Metrick (2010), explain how differences in user costs are not accounted for between repurchase agreements and currency in an aggregate such as M3 which would include both those components. How do incorporating different user costs into the aggregate improve the measurement of "money supply

Reference no: EM13730831

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