Economics Homework Help

HC Transaction Cost Asymmetric Information & Shadow Banking Discussion

 

Part I

Interaction Between Financial Intermediation Efficiency and Economic Growth, Efficient Portfolios in Financial Markets with Proportional Transaction Costs and A Model of Financial Structure and Financial Fragility articles.

Explain how financial markets and financial intermediaries manage the information costs that arise from asymmetric information.

Part II

The Shadow Banking System and Hyman Minsky’s Economic Journey (Links to an external site.) and Shadow Banking: Global Trends and Policy Developments (Links to an external site.) articles.

Determine why shadow banking has served a critical role in the market-based financial system. Compare and contrast the traditional banking system and the shadow banking system.

Each part must be a minimin of 250 words- I have provided some resources feel free to use others!