Besides globalization, or rather, parallel with it, knowledge-based economy seems to represent a highly important ground-gaining force - quasi becoming a trendy buzzword - that attracts increasing attention in developed countries, although its forms vary in different regions owing to the...

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete in a differentiated loan market, hold reserves against liquidity shocks, and refinance in the interbank market. A merger creates an internal money market that induces financial...