Over the last few decades, interest on the role of finance for investment and macroeconomic fluctuations under systemic uncertainty and crisis has grown rapidly. This book provides one of the first systematic analyses of financial intermediation and origins of crises in transitional economies undergoing reform and liberalization and takes Turkey as an example due to its turbulent economic past fraught with intermittent financial crises.
The book develops two theoretical models of financial intermediation under uncertainty to shed light on its role in generating credit crunches and business...