| Summary: | 碩士 === 國立臺北大學 === 經濟學系 === 101 === It is generally considered that credit card sales and credit card revolving balance are affected by banks’ decisions. This thesis sets up a model to investigate such a mechanism, and to study how credit card sales and credit card revolving balance are affected by monetary policies conducted by the central bank. In order to address the relationship between credit card sales and macro-economic issues, a macro model that consists of consumers, banking sector, reserve market, and the monetary authority is needed. In this thesis, we extend Chen (2013) in the sense that consumption through credit cards is incorporated into Chen (2013) framework that includes a banking sector, reserve market, and open market operation conducted by the central bank. We then study the effects of private banks’ revolving interest rate and target inflation rate on credit card sales and credit card revolving balance.
Comparative static analyses are conducted in this thesis to study how endogenous variables of our model are affected by various exogenous variables such as private banks’ revolving interest rate and target inflation rate. For analytical solutions that we are not able to determine signs and magnitudes of certain exogenous changes, we conduct numerical simulations. To avoid potential problems of drawing conclusions based on parameters chosen in the simulation of the baseline model, various sensitivity analyses are also conducted to check robustness of our model.
The main results of this thesis are as follow. 1. The equilibrium credit card sales rise with the portion of repaid that banks set for credit card consumers. 2. The equilibrium credit card sales rise with private banks revolving interest rate. However, such effects dampen as credit card sales increase. 3. The equilibrium credit card sales rise with the required reserve ratio. 4. The equilibrium credit card sales rise with the target inflation rate set by the central bank.
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