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Volume 20  Number 3  •  Winter 2016
Other Issues:  

Alternatives to the Federal Deposit Insurance Corporation
By Thomas L. Hogan, Kristine Johnson
This article appeared in the Winter 2016 issue of The Independent Review

Federal deposit insurance creates moral hazard that encourages risky banking practices and sets the stage for bank failures and financial crises. Alternatives to our current scheme include the creation of a more stable, privatized deposit insurance system, and the strengthening of market discipline through the lowering of mandated coverage levels, or doing away with deposit insurance requirements altogether.

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