In this paper, we use Structural VAR analysis to disentangle credit demand and supply shocks and their eFFect on real economic activity in Italy during the 2008-2014 crisis period. The three endogenous variables considered are the loan interest rate, the loans growth rate and the employment to...

Introduction -- Efficient markets and central banks? -- Money, banks and central banks -- Stable and unstable markets -- Deceiving the diligent -- On (central bank) governors -- Minsky meets Mandelbrot -- Beyond the efficient market fallacy -- Concluding remarks

How to stimulate the economy by credit creation without causing financial instability is the main thrust of this book. In order to accomplish this goal, the author suggests, contrary to the accepted, albeit conventional, academic paradigm, doing away with the Efficient Market Hypothesis and...