Financial Innovation (Boz & Mendoza)

Financial Innovation, the discovery of risck, and the U.S. credit crisis, by Emine Boz and Enrique G. Mendoza, published by IMF. The paper argues that financial innovation in an environment with imperfect information and credit frictions was a central factor behind the credit and land price booms that led to the crisis. http://migre.me/YAyb