The current global financial crisis has seen both substantial credit impairment and pronounced market illiquidity …, undermining bank balance sheets and creating a global credit contraction. One consequence has been a dramatic shift in monetary … an accelerating fall of prices and output (deflation) and the inabilty to counter this threat using monetary policy alone …

intermediation and underlying monetary policy. In this augmented model, equilibrium deposits yield zero return in a deflation or very …

-Keynesian analysis of credit institutions will help us determine new solutions for economic policy aiming at full employment. Following … rather a practical reflection on the optimal economic policies resting on an in-depth understanding of money and credit …