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In Contemporary Financial Intermediation, Third Edition, Greenbaum, Thakor and Boot offer a distinctive approach to financial markets and institutions, presenting an integrated portrait that puts information at the core. Instead of simply naming and describing markets, regulations, and...
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Relying on theories in which bank loans create deposits—a process we call “funding liquidity creation”—we measure how … constrained by the supply of cash deposits. During the 2001-2020 period, 92% of bank deposits were due to funding liquidity …
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