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A Network Analysis of the Italian Overnight Money Market

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Author Info
Giulia Iori () (Department of Economics, City University, London)
Giulia de Masi () (University of l’Aquila)
Ovidiu Precup () (King’s College London)
Giampaolo Gabbi () (SDA Bocconi School of Management)
Guido Caldarelli () (University of “La Sapienza”)

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Abstract

The objective of this paper is to analyze, by employing methods of statistical mechanics of complex networks, the network topology of the Italian segment of the European overnight money market. We investigate differences in the activities of banks of different size and the evolution of their connectivity structure over the maintenance period. The main objectives are to understand potential implications of current institutional arrangements on the stability of the banking system and to assess the efficiency of the interbank market in terms of absence of speculative and preferential trading relationships.

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Publisher Info
Paper provided by Department of Economics, City University, London in its series City University Economics Discussion Papers with number 05/05.

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Length: 23 pages
Date of creation: 27 Jul 2005
Date of revision:
Publication status: Forthcoming in Journal of Economic Dynamics and Control, 2007.
Handle: RePEc:cty:dpaper:0505

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  1. Giulia Iori & Roberto Renò & Giulia de Masi & Guido Caldarelli, 2006. "Trading strategies in the Italian Interbank Market," City University Economics Discussion Papers 06/03, Department of Economics, City University, London. [Downloadable!]
    Other versions:
  2. Goetz von Peter, 2007. "International banking centres: a network perspective," BIS Quarterly Review, Bank for International Settlements, December. [Downloadable!]
  3. Daniel O. Cajueiro & Benjamin M. Tabak, 2007. "The role of banks in the Brazilian Interbank Market: Does bank type matter?," Working Papers Series 130, Central Bank of Brazil, Research Department. [Downloadable!]
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