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A minimal model of money creation under regulatory constraints

US & West · 15 Sept

arXiv:2410.18145v2 Announce Type: replace Abstract: We propose a minimal model of the secured interbank network able to shed light on recent money markets puzzles. We find that excess liquidity emerges due to the interactions between the reserves and liquidity ratio constraints; the appearance of…

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Original headline: A minimal model of money creation under regulatory constraints

Read the original: arXiv — General Economics (econ.GN)

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A minimal model of money creation under regulatory constraints

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