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O. Jeanne and L. E. O. Svensson, ‘Credible Commitment to Optimal Escape from a Liquidity Trap: The Role of the Balance Sheet of an Independent Central Bank,” American Economic Review, Vol. 97, No. 1, 2007, pp. 474-490. doi:10.1257/aer.97.1.474

has been cited by the following article:

• TITLE: The Transmission Channels between Financial Sector and Real Economy in Light of the Current Financial Crisis a Critical Survey of the Literature

  AUTHORS: Georgios L. Vousinas

  KEYWORDS: Transmission Channels; Bank Lending Channel; Financial Crisis; Regulation; Liquidity

  JOURNAL NAME: Modern Economy, Vol.4 No.4, April 26, 2013

  ABSTRACT: The present study undertakes a critical review of the research around the major issue of the transmission channels between financial sector and real economy. The aim of the study is to shed light on the interaction between the financial system and the economy, in the shadow of the current crisis. The literature documents the importance of these channels in the determination of economic activity and therefore, real economy as a whole. The study highlights the emergence of the liquidity channel as a key factor of the transmission of bank credit shocks to real economy and underlines the existing “regulation gaps”. The paper concludes that the financial sector plays an even more crucial role these days and drastic measures along with intense supervision must be undertaken so as to work properly and serve the economic world.