THADDEN, Ernst-Ludwig VON - Départment d'économétrie et d'économie politique … - 1996
The article re-examines the proposition, first formulated by Bryant (1980) and Diamond and Dybcvig ( 1983), that in a production economy with stochastic liquidity shocks to the household sector, banks serve to provide optimal intertemporal insurance to consumers. The paper argues that in order...