Besancenot, Damien; Vrânceanu, Radu - In: Journal for Economic Forecasting (2010) 1, pp. 5-20
This paper analyzes banks’ communication policies in crisis times and the role of imperfect information in enhancing banks' financial distress. If banks differ in their exposure to dubious assets, fragile banks may claim to be sound only in order to manipulate investors' expectations. Then...