
Contents
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28.1 Introduction 28.1 Introduction
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28.2 “Contagion” versus Fundamentals as Causes of Bank Failures 28.2 “Contagion” versus Fundamentals as Causes of Bank Failures
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28.3 US Bank Distress During the Great Depression 28.3 US Bank Distress During the Great Depression
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28.4 Microeconomic Studies of Local Contagion 28.4 Microeconomic Studies of Local Contagion
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28.5 US Bank Distress in the Pre-Depression Era 28.5 US Bank Distress in the Pre-Depression Era
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28.6 Other Historical Experiences with Bank Failures 28.6 Other Historical Experiences with Bank Failures
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28.7 Bank Failures in the Late Twentieth Century 28.7 Bank Failures in the Late Twentieth Century
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28.8 Conclusion 28.8 Conclusion
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References References
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28 Bank Failures, The Great Depression, and Other “Contagious” Events
Get accessCharles W. Calomiris is the Henry Kaufman Professor of Financial Institutions at Columbia Business School, a Professor at Columbia’s School of International and Public Affairs, and a Research Associate of the National Bureau of Economic Research. He is a member of the Shadow Open Market Committee and the Financial Economists Roundtable. He is a Distinguished Visiting Scholar at the Hoover Institution, where he co-directs the Initiative on Regulation and the Rule of Law, and a Fellow at the Manhattan Institute. He received a B.A. in Economics from Yale University in 1979 and a Ph.D in Economics from Stanford University in 1985.
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Published:06 November 2019
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Abstract
Deposit withdrawal pressures on banks, which sometimes take the form of sudden runs, have figured prominently in the discussion of public policy toward banks and the construction of safety nets such as deposit insurance and the lender of last resort. This chapter examines historical evidence from the Great Depression, and other episodes, on the factors that prompted withdrawals, the discussion of contagious runs, and the public policy implications. The historical evidence is presented in detail and is connected to the debate over the proper roles of deposit market discipline via the threat of withdrawals, the insurance of deposits, and lender-of-last-resort support for banks facing withdrawal pressures.
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