Banking: a mechanism design approach
Research published by the Philadelphia Federal Reserve studies banking using the tools of mechanism design, without a priori assumptions about what banks are, who they are, or what they do.
The research discusses how many and which agents play the role of bankers and some banking history, and compare it with the predictions of their theory.
The bankers in the model endogenously accept deposits, and their liabilities help others in making payments. The research argues that this activity is
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