Financial intermediation as a source of aggregate instability

Mattesini Fabrizio
CEIS Working Papers
We consider a simple overlapping generations economy where the behavior of intermediaries, in a market characterized by asymmetric information and moral hazard, may give rise to cyclical equilibria. When capital increases output and savings also increase,
Number: 218
Date: Thursday 01 September 2005
Revision Date: Thursday 01 September 2005