Bijlsma, Michiel; Dubovik, Andrei; Zwart, Gijsbert - Centraal Planbureau (CPB), Government of the Netherlands - 2012
In CPB Discussion Paper 209 we study incentives of financial intermediaries to reserve liquidity given that they can rely on the interbank market for their liquidity needs. Intermediaries can partially pledge their assets to each other, but not to the rest of the economy. Therefore liquidity...