The interaction between credit frictions, financial innovation, and a switch from optimistic to pessimistic beliefs … innovation enhances the ability of agents to collateralize assets into debt, but the riskiness of this new regime can only be …

mechanism particularly in a period of crisis. Keywords: bank lending channel, monetary policy, financial innovation. …

mechanism particularly in a period of crisis. - Bank lending channel ; monetary policy ; financial innovation …

and insurance illusion. Rate of return regulation is proposed as an appropriate regulatory measure. Alternatively the … innovations ; rate of return regulation …