Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152876
Authors: 
Monnet, Cyril
Quintin, Erwan
Year of Publication: 
2005
Series/Report no.: 
ECB Working Paper 442
Abstract: 
We describe a dynamic model of financial intermediation in which fundamental characteristics of the economy imply a unique equilibrium path of bank and financial market lending. Yet we also show that economies whose fundamental characteristics have converged may continue to have very different financial structures. Because setting up financial markets is costly in our model, economies that emphasize financial market lending are more likely to continue doing so in the future, all else equal.
Subjects: 
banks
convergence
Financial Institutions
financial markets
Financial Systems
JEL: 
L16
G10
G20
N20
Document Type: 
Working Paper

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