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Financial Structure and Aggregate Economic Activity: An Overview
Mark Gertler
Journal of Money, Credit and Banking , Vol. 20, No. 3, Part 2: Recent Developments in
Macroeconomics. (Aug., 1988), pp. 559-588.
Stable URL:
/sici?sici=0022-28792920%3A3%3C559%3AFSAAEA%3E2.0.CO%3B2-5
Journal of Money, Credit and Banking is currently published by Ohio State University Press.
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Thu Apr 19 13:27:57 2007
MARK GERTLER
Financial Structure and Aggregate
Economic Activity: An Overview
MOSTOF MACROECONOMIC THEORY PRESUMES that the
financial system functions smoothly-and smoothly enough to justify abstract-
ing from financial considerations. This dictum applies to modern theory. The
currently popular real business cycle paradigm proceeds under the working
hy
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