A European directive requires Member States to give firms access to preventive restructuringprocedures. This paper assesses the interest of a procedure distinct from that for insolvent firms. Itis based on the French experience, where a preventive procedure has coexisted with the morecommon...

We study the role of monetary policy when asset-price bubbles may form due to herd behavior in investment in an asset whose return is uncertain. To that aim, we build a simple general-equilibrium model whose agents are households, entrepreneurs, and a central bank. Entrepreneurs receive private...