In the wake of the financial crisis, new regulatory measures were introduced which, along with changes in monetary and macroeconomic policy, have transformed the global financial structure. But this new financial structure displays various fragilities. A new shadow banking system has grown both inside and outside the traditional banks and the divergence between core and periphery countries' banks has increased further due to both the new regulations and the European Central Bank's very peculiar interventions.

Following Minsky's approach, this book explores the interplay between...