Banking crises share a cyclical timing driven by loose monetary policy or credit cycles, but timing alone is insufficient—a crisis of large magnitude requires something deeply wrong with the microeconomic incentives in the banking system, not merely a normal business-cycle reaction.

causalpending

Speaker

Charles Calomiris

Evidence Quote

what's different about banking crises is that that isn't enough to get them to happen... there's got to be something wrong with a micro economic incentives in the banking system

Source

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

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