Introduction -- 1 What is money? -- A History of Money and Banking -- 2 Money from the very beginning -- 3 Banks enter the scene -- 4 The dawn of modern banking -- 5 The creation of a paper currency -- 6 Modern banking comes of age -- 7 The role of banks in a modern economy -- II An Analysis of...

This paper takes stock of European banks’ accumulated losses since 2007 and relates these to bank characteristics. In line with previous studies, we find that large, market-oriented banks were particularly hit by the 2007-2009 global financial crisis whereas smaller, retail-oriented banks...

We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects and purchase government bonds. While an increase in bond purchases crowds out profitable investments, it improves the government's incentives to repay and therefore lowers its...