Banking Crises Perspectives from The New Palgrave Dictionary

Why do banks collapse? Are financial systems more fragile in recent decades? Can policies to fix the banking system do more harm than good? What's the history of banking crises? With dozens of brief, non-technical articles by economists and other research

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Banking Crises Perspectives from The New Palgrave Dictionary

Edited by Garett Jones

George Mason University, USA

Selection, preface and editorial matter r Garett Jones 2016 Softcover reprint of the hardcover 1st edition 2016 978-1-137-55378-2 All articles first published in The New Palgrave Dictionary of Economics, 2nd Edition Edited by Steven N. Durlauf and Lawrence E. Blume in eight volumes, 2008 or The New Palgrave: A Dictionary of Economics Edited by John Eatwell, Murray Milgate and Peter Newman in four volumes, 1987 Some entries in this volume have been updated since their original publication. All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2016 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgraves and Macmillans are registered trademarks in the United States, the United Kingdom, Europe and other countries.

ISBN 978-1-349-55412-6 ISBN 978-1-137-55379-9 (eBook) DOI 10.1007/978-1-137-55379-9 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Typeset by MPS Limited, Chennai, India.

Contents List of Figures

vii

Federal Reserve System

94

DONALD D. HESTER

List of Tables

ix

Preface

x

List of Contributors

xiii

Bagehot, Walter (1826–1877)

01

ASA BRIGGS

Bank of England

05

CHARLES A. E. GOODHART

banking crises

18

CHARLES W. CALOMIRIS

banking industry

108

LAWRENCE H. OFFICER

Greek crisis in perspective: Origins, effects and ways-out

119

NICOS CHRISTODOULAKIS

Great Depression

144

PETER TEMIN

Great Depression, monetary and financial forces in 154 SATYAJIT CHATTERJEE AND P. DEAN CORBAE

25

DARIO FOCARELLI AND ALBERTO FRANCO POZZOLO

bubbles