Ahn, Jung-Hyun; Bignon, Vincent; Breton, Régis; … - 2016
parameter values, banks may choose to hold too much or too little liquidity on aggregate compared with the socially optimal … measures that can reduce hoarding of cash by banks and, on the other hand, about liquidity requirements of the type imposed by … the new Basel III regulation. In our model, banks hold tradable and nontradable assets. Nontradable assets are subject to …