Einarsson, Tor; Marquis, Milton H. - Federal Reserve Bank of San Francisco - 2000
banks does induce persistent liquidity effects, but results in excess volatility of consumption and investment; (iii … effect; (ii) deposit
precommitment by households along with a presetting of the deposit rate by banks does … intermediation, liquidity,
monetary policy.]
2
I.Introduction
The principal economic functions performed by commercial banks are to …