We review research on the effects of banks on the real economy, including, but not limited to
articles in this Special Issue of the Journal of Corporate Finance. We focus primarily on US …

Economists both failed to predict the global financial crisis and underestimated its
consequences for the broader economy. Focusing on the second of these failures, this …

Credit markets, including the market for bank loans, are characterized by imperfect and
asymmetric information. These informational frictions can interact with other economic forces …

The high social costs of financial crises imply that economists, policymakers, businesses,
and households have a tremendous incentive to understand, and try to prevent them. And …

Part 6: Financial Markets and the Macroeconomy. 19. Asset prices, consumption, and the
business cycle (JY Campbell). 20. Human behavior and the efficiency of the financial system …

Interconnections between banking crises and fiscal crises have a long history. We document
the long-run evolution from classic banking panics toward modern banking crises where …

This paper shows that liquidity regulation can trigger unintended credit booms in the
presence of interbank market power. We consider a price setter and a continuum of price …

We trace the origins of China's rapidly developing shadow banking sector to the adoption of
stricter liquidity rules by Chinese regulators in the late 2000s. Our analysis exploits …

This paper offers a historical perspective on the evolution of central banks as lenders of last
resort (LOLR). Countries differ in the statutory powers of the LOLR, which is the outcome of a …

Despite France's importance in the interwar world economy, the scale of the French banking
crises of 1930–1 and their consequences have never been fully assessed quantitatively …