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John Cochrane and Amit Seru: Preventing Bailouts Is Simple, but It Isn’t Easy


The Fed could simply stop blocking run-proof banks from emerging. But that would take political will. There was a financial crisis in 2008. The U.S. government responded with bailouts. If people know they will be bailed out in the next crisis, they take too much risk. Recognizing this danger, the government vastly expanded financial

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Posted: May 13, 2024 Monday 04:32 PM