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April 1, 2001Journal of Political EconomyOpen Access

Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking

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DDDouglas W. DiamondNational Bureau of Economic ResearchRRRaghuram G. RajanBoston University

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Diamond et al. (2001) studied this question.

synapsesocial.com/papers/69dff724bdd89ea531860830https://doi.org/10.1086/319552
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