Dalla, Eleni; Karpetis, Christos; Varelas, Erotokritos - In: Atlantic Economic Journal 42 (2014) 4, pp. 427-440
Using a two-stage Cournot game with economies of scope, we examine the effects of monetary policy on the optimal bank behavior. Emphasis is on the way the interest rate spread is influenced by the minimum reserve requirements. It is demonstrated that the sign of this effect depends on the kind...