WHAT SHOULD BANKS REALLY DO?: COMMENT

George S. Berger

Contemporary Economic Policy, 1993, vol. 11, issue 4, 107-110

Abstract: In the July 1992 Contemporary Policy Issues edition, Lawrence J. White (1992) argues that the inherently unstable character of the banking system requires that depositors be protected by various types of government intervention. The comment here outlines the opposite argument: government intervention destabilizes an inherently stable banking system. A framework developed in the comment provides the basis for criticizing White's general approach and policy proposals.

Date: 1993
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