tag:blogger.com,1999:blog-4737479797606051454.post4703582987818443923..comments2023-08-20T05:15:12.064-04:00Comments on David Karp's Blog: Interest rate puzzleAnonymoushttp://www.blogger.com/profile/01298927624705668945noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4737479797606051454.post-68014865930336053012010-05-14T23:12:20.421-04:002010-05-14T23:12:20.421-04:00Perhaps TFSA people are less likely to withdraw? I...Perhaps TFSA people are less likely to withdraw? In the classic Diamond Dyvib model the less likely a liquidity shock is to a bank the greater the interest rate offered. The larger the deposit the more likely a withdraw to finance other investments perhaps? I do know that large depositors have more incentive to monitor and to run the bank, but I dont know if ING would want make the rates different for that reason.<br /><br />On another note 2% is likely below inflation, Carney recently declared that inflation is likely to be slightly above target.Anonymousnoreply@blogger.com