8  See N. Cassola, M. Drehmann, P. Hartmann, M. Lo Duca and M. Scheicher (2008), “A research perspective on the propagation of the credit market turmoil”, ECB Research Bulletin, June.
4  BIS Review 154/2008  currently very high degree of asymmetric information about counterparty risk.9 As is well understood since the work of Akerlof,10 asymmetric information can lead to reduced market activity, in which only the “worst” parties are willing to trade.