Cadet, Raulin Lincifort (2006): A Theory of Linkage between Monetary Policy and Banking Failure in Developing Countries.
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This paper presents a model of the banking sector that maximize profit and an individual bank which is a price taker, in a developing country. The interest rate on treasury bills is included in the model to measure monetary policy. The mathematical expression of the probability of banking failure is calculated; And, I show that, in developing countries, a tightening monetary policy may induce efficient banking failure.
|Item Type:||MPRA Paper|
|Institution:||Université de Rennes 1|
|Original Title:||A Theory of Linkage between Monetary Policy and Banking Failure in Developing Countries|
|Keywords:||Banking Failure; Monetary Policy; Interest Rate; Developing Countries|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
|Depositing User:||Raulin Cadet|
|Date Deposited:||30. Oct 2007|
|Last Modified:||11. Feb 2013 22:56|
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