. Using this framework, we show conditions under which idiosyncratic shocks to bank lending can generate aggregate … sector for many countries is indeed granular, as the right tail of the bank size distribution follows a power law. We then … concentration is associated with a positive and significant relationship between bank-level credit growth and aggregate growth of …

experience of Greece, the most extreme manifestation of the puzzling behavior of spreads during Covid. We develop a small open … boom-bust cycle of Greece before Covid and salient observations on macro aggregates, government debt, and the sovereign …

monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …

the effects that sovereign risk has on real economic activity. In an application to Italy, we find that the progressive …