• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site
Of all publications in the section: 2
Sort:
by name
by year
Article
Vinogradov D. The Manchester School. 2011. Vol. 79. No. 3. P. 480-509.

One of the important functions of financial intermediation is intertemporal risk smoothing. In this paper we study the effects of a production shock in a closed economy and compare the abilities of market-based and bank-based financial systems in processing the shock. The analysis of the shock propagation indicates that a competitive banking system may collapse in the absence of a proper regulation. Paradoxically, it is the credibility of banks that makes bank-based economies fragile. A necessary and sufficient condition for successful bailout schemes is proposed.

Added: Jun 26, 2018
Article
Muravyev A. The Manchester School. 2009. Vol. 77. No. 6. P. 651-674.
Added: Feb 5, 2015