Boissay, Frederic; Collard, Fabrice; Smets, Frank - European Central Bank - 2013
The empirical literature on systemic banking crises (SBCs) has shown that SBCs are rare events that break out in the … midst of credit intensive booms and bring about particularly deep and long-lasting recessions. We attempt to explain these … phenomena within a dynamic general equilibrium model featuring a non-trivial banking sector. In the model, banks are …