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Fragile by Design: The Political Origins of Banking Crises and Scarce Credit

Fragile by Design The Political Origins of Banking Crises and Scarce Credit Why are banking systems unstable in so many countries but not in others The United States has had twelve systemic banking crises since while Canada has had none The banking systems of Mexico and

  • Title: Fragile by Design: The Political Origins of Banking Crises and Scarce Credit
  • Author: Charles W. Calomiris Stephen H. Haber
  • ISBN: null
  • Page: 395
  • Format: Kindle Edition
  • Why are banking systems unstable in so many countries but not in others The United States has had twelve systemic banking crises since 1840, while Canada has had none The banking systems of Mexico and Brazil have not only been crisis prone but have provided miniscule amounts of credit to business enterprises and households Analyzing the political and banking history ofWhy are banking systems unstable in so many countries but not in others The United States has had twelve systemic banking crises since 1840, while Canada has had none The banking systems of Mexico and Brazil have not only been crisis prone but have provided miniscule amounts of credit to business enterprises and households Analyzing the political and banking history of the United Kingdom, the United States, Canada, Mexico, and Brazil through several centuries, Fragile by Design demonstrates that chronic banking crises and scarce credit are not accidents due to unforeseen circumstances Rather, these fluctuations result from the complex bargains made between politicians, bankers, bank shareholders, depositors, debtors, and taxpayers The well being of banking systems depends on the abilities of political institutions to balance and limit how coalitions of these various groups influence government regulations Fragile by Design is a revealing exploration of the ways that politics inevitably intrudes into bank regulation Charles Calomiris and Stephen Haber combine political history and economics to examine how coalitions of politicians, bankers, and other interest groups form, why some endure while others are undermined, and how they generate policies that determine who gets to be a banker, who has access to credit, and who pays for bank bailouts and rescues.

    • [PDF] Download ↠ Fragile by Design: The Political Origins of Banking Crises and Scarce Credit | by ✓ Charles W. Calomiris Stephen H. Haber
      395 Charles W. Calomiris Stephen H. Haber
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      Posted by:Charles W. Calomiris Stephen H. Haber
      Published :2018-08-18T02:30:12+00:00

    1 thought on “Fragile by Design: The Political Origins of Banking Crises and Scarce Credit

    1. This is a book few people browsing through a bookstore would choose. That is a pity. It is a very interesting read. Its basic premise is that governments need banks and banks need government - but that there is an uneasy link between the two.It is divided into several parts - there is first a discussion of what functions banks perform for societies and governments and some theory building on how different types of governments function with banks. There are several chapters on the development of [...]

    2. The main idea: institutions matters. Authors provide many stories to support that statement, but you need to be quite interested in details to follow. To my taste, the book is too boring.

    3. Fascinating book with a long term historical perspective complementing cold sound reasoning! Particularly in an age where it has become so popular to search for/blame moral failings in the banking sector for economic/banking crises it is refreshing to see a book which looks at the strings pulling the puppet and the puppet master's incentives. Human failings, error and greed are of course always present in any society, but the book's great insight is that in fact banks are not born and neither do [...]

    4. This one was recommended by my brother Jack, an economist at Victoria University of Wellington. He said it is getting "good reviews."For example: nytimes/2014/04/13/boo What really leaps out at me is how much responsibility liberal activists (ACORN, etc.) bear for causing The Great Recession by pressuring for the lowering of underwriting standards (p. 208 - 256) to provide loan access to poor and inner-city borrowers. So much (p. 497) for "greedy bankers." The authors are careful to point out th [...]

    5. The edition I have shows Stephen Haber as a co-author, and his contributions are clear, so it's odd that the authorship shows as above, and my edition is hardcover also.Charles Calomiris is the Henry Kaufman Professor of Financial Institutions at the Columbia University Graduate School of Business, and he is well published in the peer reviewed literature and he has testified on the Hill about the mortgage crisis. The only reason I don't give a higher rating is that there are two books living bet [...]

    6. "The fact that the property-rights system underpinning banking systems is an outcome of political deal making means that there are no fully 'private' banking systems; rather, modern banking is best thought of as a partnership between the government and a group of bankers, a partnership that is shaped by the institutions that govern the distribution of power in the political system. The players are those with a stake in the performance of the banking system: the group in control of the governmen [...]

    7. 2018-02 - Fragile by Design: The Political Origins of Banking Crises and Scarce Credit. (Audiobook) Charles W. Calomiris (Author) Stephen H. Haber (Author) Basil Sands (Reader) 2014. 584 Pages. I picked this up at the library on a lark a nod to my curiosity forcing me out of my comfort zone. It is a thick academic tome. It is a book really about the interplay of banking structures and politics. It follows a historical methodology looking at a county and its history through the lens of banking an [...]

    8. Heavily focused on history, thus interesting if you are interested in the history of financial systems. Five countries thoroughly discussed as examples. The book is very long and could have been formatted in a more interesting way by better connecting the historical examples to modern systems.

    9. This book is an extended elaboration of the not-so-shocking truth that governments like to plunder banking systems for the benefit of the powerful few. The authors argue that banking is unique among industries in its usefulness to government – historically, mainly for the purpose of financing war. In the process they demonstrate that the proneness of the U.S. banking system to repeated crises is a built-in feature of the particular series of political “bank bargains” that have shaped the s [...]

    10. This book presents an historical analysis of the relationship between banking, government, and politics -- the political economy of banking. The general issues are first raised and an organizing framework is presented. This is a complex topic but the framework argues that banking systems develop on the basis of a "political bargain" between some important set of political actors that can bring about regulation and the banking system, which is both separate from but highly related to the governme [...]

    11. Fragile by Design is an excellent history of the evolution of banking systems and its complex interplay with the national government . Case studies are Brazil , Canada , Japan , Mexico , United Kingdom , and USA . Also some discussion of certain countries in certain periods ( China , Germany , Chile ) . The most stunning fact in this book to me personally was that the USA banking system was grouped with 17 third world countries , Spain , and Sweden as being one of the most failure prone with a g [...]

    12. Calomiris and Haber have written a very important book for anyone who wants to understand banking and, especially, its role in the recent financial crisis. Covering the history of banking in America, Canada, Mexico and Brazil, the authors, in a clear and straightforward style, demonstrate how political conditions drive banking outcomes. The US, for example, historically shunned multi-branch banking, which the authors believe is essential to a stable banking system. The power of the farm lobby wa [...]

    13. I would classify this as a more academic book than one for the masses. It takes a deep dive into the history of the banking systems of the US, Canada, Mexico, Britain, and Brasil.I still find it really hard to believe that in the US we relied on unit banking, banks with no branches, until very recently. That means that to interact with your money you had only one location that you could go to. I initially thought that this was because of technology but it was because of an agrarian mindset that [...]

    14. A thorough, well researched book that has changed my perception on the causes of financial crises.Mr. Calomiris makes a convincing argument that the success of banking (i.e. the avoidance of panics and crashes) is largely determined with the political institutions regulating banks. Banks need governments to enforce debt contracts; governments need banks to finance the government and to direct capital towards politically favorable groups; governments need votes from the very people it regulates w [...]

    15. This is fairly readable for an academic study of banking-- which means it's slow going and requires careful attention if you want to understand what's going on. The effort is worthwhile, though. Calomiris and Haber outline the histories of five major banking systems (the U.S the United Kingdom, Canada, Mexico, and Brazil), making convincing connections between each state's geography, political coalitions, and banking structures. Curious why the U.S. has regular banking crises and the Canadians d [...]

    16. I gave up around page 150. It's a great book, but it's primarily concerned with the political issues that tie banking systems together. It covers the historical origins of banking regulations thoroughly, and to an even greater detail than Niall Ferguson's Ascent of Money (which is a good book, albeit simplifying things in order to cover more ground, over a longer duration of history, delivered in a shorter package). I gave up because I simply was not interested in pursuing this line of historica [...]

    17. The first third of this book should be mandatory reading for all Americans. It will make you very angry at banks and politicians. The book gets dragged down a bit as the author compares banking systems in the US, England, Scotland, Canada, Mexico and South America. He is trying to show that there is no one reason or political system that causes bank panics. His best idea for stopping bank crises is vague. The first third is still worth the time.

    18. Fantastic book. I'd been looking for a good history of the banking system and this is it. Models are great but they can't explain the intricacies of a system built up over the last hundreds of years. Banks need government as much or maybe even more than government needs banks. There can never be such a thing as an independent bank.

    19. Really solid overview of the history of political and bank bargains in the UK, US, Canada, Mexico and Brazil. Does get a little dry with the detail from time to time so it's not something for everyone but if the topic interests you it's a valuable read.My only real issue is how little it goes into the UKs reforms post 2007 crisis.

    20. The history sections are excellent, but the analysis of the crisis is just wrong. No, the CRA did not cause the crisis. It's actually unbelievable that they would suggest it despite any convincing data whatsoever. How is it possible again that the inner city poor formed a lobby that could not be overcome by the banks? That section aside, the rest of the book is very well-researched and readable.

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