reserves. The theoretical literature can be broadly divided into three strands: liquidity; asymmetric information; and … regulatory restriction. One strand of the literature argues that banks offer to pay par on demand in order to provide liquidity … on demand. If the explanation based on customers' demand for liquidity is correct, payment of deposits at par will be …

opportunities may be lost. We extend existing models of the demand for liquidity along several dimensions, including allowing agents …

target. This paper considers this interaction between inflation and nominal interest rates in a dynamic model of liquidity …. In a repeated Diamond&Dybvig economy a financial intermediation sector provides those agents with money/liquidity who …

We study the volatility of growth rates and find that it differs systematically across countries. Our empirical … volatility. This is not the case for some of the commonly cited reasons like initial income, inequality or instability of regimes … this as procyclical tax policy). Further, we show that procyclical tax rates will lead to higher volatility of growth rates …