Bank Runs and Insolvent Institutions
George Selgin discusses the importance of liquidity during bank runs and the dangers of keeping insolvent institutions alive. He highlights the need for access to liquidity during a run, while also emphasizing the inefficiency and wasted resources of insolvent firms. Additionally, the discussion touches on the perverse incentives that arise when an insolvent firm has access to capital.In this clip
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George Selgin on Monetary Policy and the Great Recession
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