â This book explores some relevant distortions and market failures in financial and banking markets caused by the recent financial crisis and offers important insights to policymakers as well‎.‎ After having introduced the reader to the economic background behind the origin of the present financial turmoil‎,‎ the book proposes a distinct angle to look at some macro and microeconomic aspects‎.‎ The volume discusses whether and to what extent policies‎,‎ implemented by governments and monetary authorities to countervail bank defaults and avoid a disastrous financial instability‎,‎ have in some way determined opportunistic conducts ‎(‎moral hazard‎)‎‎,‎ changes in banks‎'‎ behaviour‎,‎ distortive incentives and market failures‎.‎ Furthermore‎,‎ the book offers a viewpoint on the effects of the evolution of regulation for the banking sector‎.‎ Finally‎,‎ the book assesses how the increase in the cost of funding and the shrinking in credit supply ‎(‎credit crunch‎)‎ has modified the financial structure of small and medium firms‎.‎ To illustrate this‎,‎ some specific cases at‎.‎‎.‎‎.‎