Banking in the 19th Century
The 19th century US banking system was characterized by a multitude of independent banks, which created inefficiencies and heightened vulnerability to crises. A political alliance between small bankers and farmers sought to limit competition from larger banks, resulting in regulations that restricted interstate banking. This structure tied banks closely to local economies, complicating risk management and amplifying the impact of economic downturns.In this clip
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Charles Calomiris and Stephen Haber on Fragile by Design
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