In addition, we exploit demographic

In addition, we exploit demographic variations in the composition between senior (“old,” those aged 65 and over) and non senior (“young”) depositors across regions to improve the tightness of our identification. Here, our identification strategy focuses on differential demand elasticities of bank money—equivalently, from a bank’s perspective, the deposit supply elasticity—across different age cohorts (generations). Based on survey evidence, we claim that the deposit supply of seniors during our sample period, belonging to the G.I. generation and silent generation, is less sensitive to changes in the deposit rate (spread) than that of non seniors during this period.