Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 713-718 |
| Number of pages | 6 |
| Journal | European Economic Review |
| Volume | 44 |
| Issue number | 4-6 |
| Publication status | Published - 2000 |
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Contagious bank failures in a free banking system. / Aghion, P.; Bolton, P.; Dewatripont, M.
In: European Economic Review, Vol. 44, No. 4-6, 2000, p. 713-718.Research output: Contribution to journal › Article › Scientific › peer-review
TY - JOUR
T1 - Contagious bank failures in a free banking system
AU - Aghion, P.
AU - Bolton, P.
AU - Dewatripont, M.
N1 - Pagination: 6
PY - 2000
Y1 - 2000
N2 - This paper develops a model of an unregulated banking system based around a private clearing house arrangement. Whilst such a system may dominate one with a public safety net in reducing moral hazard in lending and therefore the scope for individual bank insolvency, it also increases the likelihood of contagious bank failures following a systemic shock or an aggregate liquidity shortage.
AB - This paper develops a model of an unregulated banking system based around a private clearing house arrangement. Whilst such a system may dominate one with a public safety net in reducing moral hazard in lending and therefore the scope for individual bank insolvency, it also increases the likelihood of contagious bank failures following a systemic shock or an aggregate liquidity shortage.
M3 - Article
VL - 44
SP - 713
EP - 718
JO - European Economic Review
JF - European Economic Review
SN - 0014-2921
IS - 4-6
ER -