Suppose, immediately after the European Central Bank (ECB) began charging banks a fee for holding their excess
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Suppose, immediately after the European Central Bank (ECB) began charging banks a fee for holding their excess reserves, the banks switched to holding cash in their vaults (rather than holding excess reserves), and also began charging customers for holding their deposits. Do you think the ECB would have kept the deposit rate in negative territory? Explain your answer.
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Related Book For
Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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