Reforming Bankruptcy Procedures
George and Russ discuss the importance of allowing firms to fail and the potential benefits of expediting bankruptcy procedures. They highlight the English proposal of creating "living wills" for larger financial firms, which could minimize spillover effects in the event of insolvency. The conversation delves into the political incentives that shape policy decisions, emphasizing the need to consider the real-world dynamics of the financial system.In this clip
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George Selgin on the Fed
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