Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/54262
Authors: 
Bossone, Biagio
Year of Publication: 
2002
Series/Report no.: 
Public policy brief // Jerome Levy Economics Institute of Bard College 69
Abstract: 
In this brief, Biagio Bossone of the International Monetary Fund evaluates narrow banking from the perspective of modern theories of financial intermediation. These theories portray the status quo banking system as a solution to otherwise intractable problems of imperfect information, risk, and even moral hazard. The system's characteristic coupling of liquid liabilities with illiquid assets - seen by some as an undesirable mismatch - in fact contributes greatly to the efficiency of the economy. Bossone argues that these efficiency gains outweigh the disadvantages associated with the existing legal framework.
ISBN: 
1931493138
Document Type: 
Research Report

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