Bhattacharya, Joydeep; Haslag, Joseph H.; Martin, Antoine - In: Journal of Economic Dynamics and Control 33 (2009) 6, pp. 1236-1246
In this paper, we argue that the observed difference in the cost of intraday and overnight liquidity is part of an optimal payments system design. In our environment, overnight liquidity affects output while intraday liquidity affects only the distribution of resources between money holders and...
