Bank runs and noisy signals
J Boonprakaikawe and S Ghosal
CSGR Working Paper No. 70/01
April 2001
Abstract:
We show that even with noisy signals on the quality of a bank's assets multiple equilibria exist in models of banking. We argue that the conditions under which this happens arise naturally in models of banking.
Keywords: Banking, fundamentals, signals and equilibria
JEL Classifications: D80, D82, G21
