payment, (ii) there is a shortage of liquidity that a central bank addresses through the extension of credit, (iii) money is …

How do the liquidity functions of banks affect investment and growth at different stages of economic development? How … in a liquid storage technology or in a partially illiquid Cobb Douglas technology. By pooling liquidity risk, banks play … issues using an overlapping generations growth model where agents, who experience idiosyncratic liquidity shocks, can invest …

Researchers have incorporated labor or credit market frictions in isolation within simple neoclassical models to open … with a credit market friction (costly state verification). The simultaneous presence and interaction of these two frictions … is studied. Our main results are: (i) while credit market frictions affect real activity and employment both in the short …