Banking System Resilience
The U.S. banking system remarkably endured for 150 years despite numerous crises, largely due to federalism allowing states to set their own banking rules. Agricultural interests could easily influence state-level decisions, making it challenging to establish a nationwide branch banking system. The national banking system, created in the 1860s, ultimately mandated unit banks, limiting the potential for broader banking operations.In this clip
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Charles Calomiris and Stephen Haber on Fragile by Design
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