Yamaguchi journal of economics, business administrations & laws Volume 71 Issue 1-2
published_at 2022-07-31
The purpose of this paper is to present a macroeconomic model, in which the bank determine the loan interest rate and the deposit interest rate by assuming the loan demand curve and the deposit supply curve. The bank adjusts the loan interest rate and the deposit interest rate while observing the difference between the assumed demand for loan and the actual demand for loan.