The Minsky/'madness of crowds' explanation—that banking crises arise from unchanging human frailty, greed, or panic—is refuted by the basic fact that crisis frequency varies enormously across time and place; if human psychology were the driver, we would not see such variation, so something other than human nature must explain the difference.

causalpending

Speaker

Charles Calomiris

Evidence Quote

I don't know any economic historian of banking who today who subscribes to it... the thing that's wrong with the story is obvious basic facts

Source

Charles Calomiris on the Financial Crisis 10/26/2009EconTalk
Created: 6/15/2026, 9:20:15 AM

My Notes

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