Today's Basel-type banking system is compared with a 100% reserve banking system. Furthermore, negative interest rate on deposits is introduced for these two systems thus two new models are introduced. Eventually all four models are compared with each other in terms of debt crisis mechanisms and if they are prone to enter a liquidity trap. The comparing is done for debt to GDP ratio around a certain ratio of 60% thought to give neutral confidence, thus the effect from confidence dynamics can be excluded for these simulations.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:ntnu-9023 |
| Date | January 2009 |
| Creators | Solgård, Stian Bu |
| Publisher | Norges teknisk-naturvitenskapelige universitet, Institutt for teknisk kybernetikk, Institutt for teknisk kybernetikk |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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