This paper shows that depending on the distribution of banks' uncertain liquidity needs and on how monetary policy is …

This paper shows that depending on the distribution of banks' uncertain liquidity needs and on how monetary policy is …

"Financial systems are inherently fragile because of the very function which makes them valuable: liquidity … transformation. Regulatory reforms can strengthen the financial system and decrease the risk of liquidity crises, but they cannot … between monetary policy and liquidity transformation 'optimal' monetary policy would consist of a modified Taylor rule in …