Wiemers, Jürgen; Neyer, Ulrike - Institut für Wirtschaftsforschung Halle (IWH) - 2003
The interbank money market plays a key role in the execution of monetary policy. Hence, it is important to know the … functioning of this market and the determinants of the interbank money market rate. In this paper, we develop an interbank money … market model with a heterogeneous banking sector. We show that besides for balancing daily liquidity fluctuations banks …