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This paper proposes rules for the control of interbank rate volatility under different interest corridor systems when volatility stems from interbank market frictions. Friction-induced volatility will occur if there is heterogeneity in two dimensions (across banks and time) with respect to the...
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Advanced economies are undergoing a structural transformation from manufacturing to services. We document that … structural change comes with a process of services deepening: over time, both services and manufacturing become more intensive in … service inputs. We argue that structural transformation and services deepening affect the transmission of monetary policy by …
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