On the welfare properties of fractional reserve banking

Preprint OPEN
Sanches, Daniel R.;
  • Subject: Fractional reserve banking; Reserve management; Risk sharing
    • jel: jel:E42 | jel:G21

Supersedes Working Paper 13-32/R. Monetary economists have long recognized a tension between the benefits of fractional reserve banking, such as the ability to undertake more profitable (long-term) investment opportunities, and the difficulties associated with it, such ... View more
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