Fighting Financial Crises: Learning from the Past
Gary B. Gorton and Ellis W. Tallman
Abstract
Financial crises, banking panics, have plagued all market economies and have throughout history. This book is about fighting financial crises. Lessons and rules are derived from history, in particular from the experience of the US National Banking Era, 1963-1914. In this era, private bank clearing houses were at the forefront of fighting crises. The key lesson concerns managing information during the crisis. Information was withheld by the clearing house so that individual banks did not experience runs. The lessons are applied to modern crises, which are more complicated because of expectatio ... More
Keywords: financial crises, banking panics, suppression of information, secrecy
Bibliographic Information
| Print publication date: 2018 | Print ISBN-13: 9780226479514 |
| Published to Chicago Scholarship Online: May 2019 | DOI:10.7208/chicago/9780226479651.001.0001 |
