Samartín, Margarita; Dwyer, Gerald - Society for Economic Dynamics - SED - 2004
reserves. The theoretical literature can be broadly divided into three strands: liquidity; asymmetric information; and … promised when banks hold assets that are illiquid in the short run. If the asymmetric-information explanation based on the … consistent with the asymmetric information theory. On the other hand, these banks also accepted deposits redeemable only with …