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Financial Structure and Aggregate Economic Activity: An Overview Mark Gertler Journal of Money, Credit and Banking , Vol. 20, No. 3, Part 2: Recent Developments in Macroeconomics. (Aug., 1988), pp. 559-588. Stable URL: /sici?sici=0022-28792920%3A3%3C559%3AFSAAEA%3E2.0.CO%3B2-5 Journal of Money, Credit and Banking is currently published by Ohio State University Press. Your use of the JSTOR archive indicates your acceptance of JSTORs Terms and Conditions of Use, available at /about/terms.html. JSTORs Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at /journals/ohio.press.html. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is an independent not-for-profit organization dedicated to and preserving a digital archive of scholarly journals. For more information regarding JSTOR, please contact support@. Thu Apr 19 13:27:57 2007 MARK GERTLER Financial Structure and Aggregate Economic Activity: An Overview MOSTOF MACROECONOMIC THEORY PRESUMES that the financial system functions smoothly-and smoothly enough to justify abstract- ing from financial considerations. This dictum applies to modern theory. The currently popular real business cycle paradigm proceeds under the working hy