Central banks set the stage for financial collapse through excessive credit expansion, but a lax monetary policy isnt the only way that policymakers can foster a meltdown. As the recent banking crises in Iceland and Ireland illustrate, a faulty deposit insurance system and a poorly managed accession to the currency union can make matters worse.
The Icelandic and Irish Banking Crises
Alternative Paths to a Credit-Induced Collapse
By David Howden
This
article
appeared in
the Winter 2013/14 issue of The Independent Review.
Banking and FinanceBanking Law and RegulationBusiness and EntrepreneurshipEconomic PolicyEconomyEuropeInternational Economics and DevelopmentLaw and Liberty
Other Independent Review articles by David Howden | |
Fall 2015 | Why Did Chinas Population Grow so Quickly? |