We examine informational efficiency in retail credit markets to test whether behavioral biases by participants in the banking industry might explain credit cycles. We offer a simple model of herding and limits of arbitrage in retail credit markets that follows the behavioral approach of Shleifer...

European authorities are encouraging internal devaluation by GIPSI countries in order to improve their competitiveness and reduce current account deficits. However, this option introduces an additional source of risk, as it may generate deflation, making fiscal consolidation for this countries...

Financial technology (FinTech) is driving innovation in the financial industry worldwide. This article contributes to answer the question of whether FinTech firms and traditional financial institutions compete or collaborate. We use the decade of 2010s in Spain as a case study – a country with...