Gertler, Mark; Kiyotaki, Nobuhiro - Institute for Monetary and Economic Studies, Bank of Japan - 2014
aggregate production, the spread between the expected rates of return on bank assets and deposits fluctuates countercyclically … times a bank run equilibrium may not exist, the possibility can arise in a recession. We also analyze the effects of …We develop a variation of the macroeconomic model of banking in Gertler and Kiyotaki (2011) that allows for liquidity …