Protecting banks from market discipline sells well politically (as Zingales and Rajan argue): telling depositors they are protected is popular even though it is a flim-flam, which is why introducing even a small dose of market discipline is easily smashed politically and why neither politicians nor banks want it.
causalpending
Speaker
Charles CalomirisEvidence Quote
“the idea of even introducing a little smidgen of market discipline which the banks don't want is so easy to smash politically”
Created: 6/15/2026, 9:20:15 AM
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