We develop and solve a dynamic optimization model of a bank's balance sheet, highlighting the critical factors influencing banks' optimization dynamics: balance sheet adjustment costs and the spreads between bank-specific lending and deposit rates and the interbank rate. We apply the model to...

Echoes of History : The International Financial Commission in Greece / Michael Waibel -- The European Debt Crisis : How Did We Get into this Mess? How Can We Get out of it? / Michael C. Burda -- Why the Debt Crisis Led to a Systemic Crisis and How to Escape from it / Ernst-Moritz Lipp -- Legal...