The Liquidity Effect in Bank-Based and Market-Based Financial Systems

This paper assesses how the financial system influences the strength of the liquidity effect in a calibrated limited participation model of the monetary transmission mechanism. The model suggests that bankbased systems should be characterized by smaller liquidity effects since monetary injections are spread out over a larger number of firms.

MoreLess

Year of publication:	2007
Authors:	Scharler, Johann
Publisher:	Linz : Johannes Kepler University of Linz, Department of Economics
Subject:	limited participation \| transmission mechanism \| financial systems

More details

Series:	Working Paper ; 0718
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	746038976 [GVK] hdl:10419/73291 [Handle] RePEc:jku:econwp:2007_18 [RePEc]
Classification:	E32 - Business Fluctuations; Cycles ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; E58 - Central Banks and Their Policies
Source:	EconStor

Persistent link: https://www.econbiz.de/10010294589