on the role of banks for monetary transmissions. A bank-based corporate financing friction is introduced and the relative … transmission channel is stronger in the bank-based system compared to the market-based. Impulse responses to a monetary expansion … counteracting busts is, on the other hand, relatively higher in the market-based model. The statistical fit of the bank …

northern Europe should stand up and force the banks to issue more equity. This should go much further than what is foreseen in … governments to come to the rescue of their undercapitalised banks.The new responsibilities entrusted to the European Central Bank …

in Europe. This volume has a collection of chapters that show the progress made in this field: new theoretical framework …