Aftermath of Banking Crises : Effectson Real and Monetary Variables

Effectson Real and Monetary Variables

Aftermath of Banking Crises : Effectson Real and Monetary Variables
In this paper a simple optimizing model is developed to analyze the implications of a banking crisis. Banks are incorporated by assuming that they intermediate funds between firms and households. It is shown that when depositors perceive the quality of deposits to have deteriorated, they switch from deposits to cash. Because of the higher cost... READ MORE...

Publication date: June 2000
ISBN 9781451851908
$15.00

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