Ashcraft, Adam B.; McAndrews, James Joseph; Skeie, David - 2009
–Princeton Liquidity Conference, the New
York Fed 2008 Money and Payments Workshop on Implementing Monetary Policy, and the
Journal of … Money, Credit, and Banking Conference on Liquidity in Frictional Markets for helpful
comments. The views expressed in this … Federal Reserve System.
1 Introduction
�Cash-rich banks will hoard their money if they fear that the interbank market
will …