fluctuations generate a balance sheet channel, is used to rationalize the evidence. A monetary expansion increases bank leverage …

framework in which fractional reserve banks emerge in equilibrium, where bank assets are funded with liabilities made demandable … in government money, where the terms of bank deposit contracts are affected by the liquidity insurance available in … financial markets, where banks are subject to runs, and where a central bank has a meaningful role to play, both in terms of …

Under the Single Supervisory Mechanism (SSM) introduced in 2014, the European Central Bank directly supervises …