Banking crisis: causes, consequences and remedies

“Bubbles and crashes” are an endemic feature of financial systems in capitalist countries.

As a result of the deregulation of the banking sector since the 1980s banks frequently became fully exposed to these bubbles and crashes, undermining the stability of banking systems. Paul De Grauwe argues that the Basel approach is unworkable, and pleads for the return to “narrow banking”.

Check out the footage of the lecture here and the highlights here.