Liquidity Creation through Banks and Markets: Multiple Insurance and Limited Market Access
نویسنده
چکیده
The paper surveys theories of the intertemporal allocation of funds through demand deposits and anonymous markets, ...rst separately and then in an integrated model. It reviews some work on the role of market frictions and asset characteristics, and suggests that the interplay between these two is crucial in explaining the observed coexistence of demand deposits and anonymous markets. JEL classi...cation: D50, G21 ¤DEEP, Université de Lausanne, email: [email protected]. I am grateful to the Center for Advanced Study in the Behavioral Sciences, Stanford, for its hospitality.
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