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The paper presents a simple model of banking behavior where portfolio, liquidity, and liability management determine simultaneously the demand and supply of borrowed reserves on the interbank market. As the central bank is one player in this market due to its refinancing policy, it is able to...
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; microfoundations of macroeconomics …
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Since the publication of Keynes' "General Theory of Employment, Interest, and Money" in 1936 many new ideas and … combine elements of the Real Business Cycle literature such as rational expectations, microfoundations, and the concept of the …
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