Systemic Risk Preparedness
The discussion emphasizes the importance of preparation in managing systemic risk, highlighting how proactive measures can reduce the costs associated with financial crises. Gary argues that effective communication about these preparations can lead to better risk pricing and potentially create a virtuous cycle in the marketplace. However, he notes a lack of traction for these ideas, suggesting that political incentives often favor the powerful, leaving the average American unaware of the financial implications.In this clip
From this podcast
EconTalk
Gary Stern on Too Big to Fail
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