Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 27, 2022 erstellt
Description:
We study public funding of banks and non-financial firms in a time of crisis. We find that bank capitalization is more effective in stabilizing the economy than direct funding to firms, but it also creates larger distortions. We show that the optimal, social-welfare-maximizing, structure of a public funding program depends on its size. Small funding programs should target banks while large programs should be directed at non-financial firms