We study two designs for a liquidity-saving mechanism (LSM), a queuing arrangement used with an interbank settlement system. We consider an environment where banks are subjected to liquidity shocks. Banks must make the decision to send, queue, or delay their payments after observing a noisy signal of the shock. With a balance-reactive LSM, banks can set a balance threshold below which payments ...

abstract: decentralization is a process in which local affairs are administrated by local authorities outside of activities of the central government. today, decentralization policy is considered as one of the ways that most countries adopted to improve public sector performance. in this paper using geometric analysis, innovation that this paper represents, an econometric model is considered to...

Profit shifting by multinational enterprises—through manipulation of transfer prices related-party trade, intragroup lending, or the location intangibles—affects international flows, raising question its impact on current account and external balances. This paper approaches this theoretically empirically. In theory, profit distorts components bilateral balances but leaves a country’s aggregate ...