CARMASSI, JACOPO; GROS, DANIEL; MICOSSI, STEFANO - In: Journal of Common Market Studies 47 (2009) 11, pp. 977-996
The massive financial instability of 2007-08 was, in the main, the result of lax monetary policy. Regulation compounded this error by allowing and encouraging excessive leverage and maturity transformation by banks. Innovation did contribute to reckless credit expansion and investments, but...