Jayaratne, Jith; Morgan, Donald - Federal Reserve Bank of New York - 1997
insured deposits--a necessary condition for the existence of bank lending channel of monetary policy. We treat insured … deposits as a type of "internal fund," similar to cash flows. We use a simple model to sort out the possible identification … force bank lending to be constrained by the availability of insured deposits. However, the frictions seem to matter only at …