Liquidity Hoarding in Financial Networks: The Role of Structural Uncertainty

Figure 13

Time course of global and local confidence. Global confidence is calculated in a standard way as in the complete information (CI) scenario. Local confidence is an average of individual confidences of all banks in the local information (LI) LI1 scenario. CI is a scenario in which a bank has access to information from all other banks in the network. LI1 is a scenario in which a bank has access only to information from banks at distance 1.