Milei & The Process of Liberating an Economy | Yaron Brook Show
Yaron Brook Show
The Impact of Deposit Insurance on the Banking System
This chapter explores the implementation and consequences of deposit insurance on the banking system. It discusses how deposit insurance creates a risk-taking incentive for banks and identifies it as the underlying cause of bank crises. The chapter also addresses the need for additional regulations and the challenges in unwinding them without causing further problems.
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