Base Model: Banks’ Liquidity Management and Interbank Market Equilibrium

Part of the Contributions to Economics book series (CE)


The aim of this chapter is twofold. First, we will introduce in a rather simple framework the basic structure of the theoretical models presented in this work. Second, we will present a key result of this work by providing the rationale behind the existence of the interbank money market.


Transaction Cost Marginal Cost Opportunity Cost Central Bank Banking Sector 
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Copyright information

© Physica-Verlag Heidelberg 2007

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