Reallocating Liquidity to Resolve a Crisis: Evidence from the Panic of 1873
Reallocating Liquidity to Resolve a Crisis: Evidence from the Panic of 1873
About this item
Full title
Author / Creator
Publisher
Cambridge: National Bureau of Economic Research, Inc
Journal title
Language
English
Formats
Publication information
Publisher
Cambridge: National Bureau of Economic Research, Inc
Subjects
More information
Scope and Contents
Contents
We study financial stability with constraints on central bank intervention in a model with belief-driven bank runs. A pecuniary externality arises in the decentralized market for interbank loans and leads to excessively many bank failures. A forced reallocation of liquidity across banks improves social welfare and can be implemented through the iss...
Alternative Titles
Full title
Reallocating Liquidity to Resolve a Crisis: Evidence from the Panic of 1873
Authors, Artists and Contributors
Author / Creator
Identifiers
Primary Identifiers
Record Identifier
TN_cdi_proquest_journals_2649383479
Permalink
https://devfeature-collection.sl.nsw.gov.au/record/TN_cdi_proquest_journals_2649383479
Other Identifiers
ISSN
0898-2937
DOI
10.3386/w28870
