In a NK model with two types of rational agents, savers and capitalists, and non-maximizing banks, financial shocks do affect the macroeconomic dynamics depending on banks' behaviour as for their leverage ratio. We first show that the level of banks' leverage - which may be imposed by banks...

Detecting whether banks' leverage is indeed procyclical is relevant to support the view that booms and crises may be reinforced by some sort of supply side financial accelerator, whilst finding a plausible explanation of banks' behaviour is crucial to trace the road for a sensible reform of...