Periods of banking distress are often followed by sizable and long-lasting contractions in bank credit. They may be … capital-constrained banks, a "credit crunch". This paper develops a bank model to study credit crunches and their real effects … in the supply of credit when hit by small shocks. However, for larger shocks, highly persistent credit crunches may arise …

became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by … better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the …

Policy-makers have attributed the scale of the credit crisis and its profound impact on money markets (as well as …

macroeconomic effects of financial globalization, in terms of both growth and volatility. Overall, our critical reading of the …