The Rise of "Too Big to Fail"
George and Russ discuss the origins and consequences of the "too big to fail" doctrine, tracing it back to the rescue of Continental Illinois in 1984. They explore how this intervention changed the game for large financial firms and led to an increase in the expectation of future bailouts. The discussion highlights the self-fulfilling nature of the notion and the doubts surrounding the severe systematic consequences predicted at the time.In this clip
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George Selgin on Monetary Policy and the Great Recession
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