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Collapsing credit markets have been blamed for the depth and persistence of the Great Depression in the United States. Could similar mechanisms have played a role in ending the East Asian economic miracle - and in creating fragility in global financial markets? After a brief account of the...
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stability and economic (productivity) growth is taken into account. Both sides of the trade-off are affected by banks' credit …-sensitive'. Differences in company productivity have a further effect on the profile of optimal risk weights, and may amplify the ‘flattening …
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that links these features of the business environment to cross-firm productivity distributions, entrepreneurs' welfare, and …
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