Topic 4: Credit and Banking

Reading pack is now available.
http://groups.google.com/group/economaru/files
Lecture note is being expanded, so the complete version will be uploaded later.

I've decided to include only 2 articles in the reading pack this time. These are:
Bernanke and Blinder (1988) "Credit, Money and Aggregate Demand" AER
Diamond and Dybvig (1983) "Bank Runs, Deposit Insurance, and Liquidity" JPE
The first article is technically easier and may be useful for subsequent materials, so should be the priority reading.