
Banks are ‘inherently unstable’, BIS paper finds

Instability is the logical result of all the main roles banks play in an economy, research published by the Bank for International Settlements finds.
In the working paper, Chao Gu, Cyril Monnet, Ed Nosal and Randall Wright note even the “staunchest proponents” of laissez-faire economic policies, such as Milton Friedman, advocated banking regulation as a necessary part of monetary stability.
The authors say they started out agnostic to the possibility banks are “inherently unstable”. They note
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com