Unraveling the Maze of Banking: Key to Preventing Future Financial Crises
Financial crises are harmful, so it's crucial to understand past ones to prevent future ones. The Maze of Banking by Gary Gorton looks at U.S. banking history from 1837 to 2008, showing how banking changed but also stayed the same. Bank debt has always been at risk of bank runs without government help. By studying these patterns, we can work towards a stable banking system and avoid economic crises.