De Nicolò, Favara and Ratnovski (2012), on which this section heavily draws, classify the ones known as follows (see also Allen and Carletti, 2011, Bank of England, 2011, Schoenmaker and Wierts, 2011):Externalities related to strategic complementarities, that arise from the strategic interactions of banks and other financial institutions and agents, and which cause the build-up of vulnerabilities during the expansionary phase of a financial cycle;
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