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

"Big achievementsand big flaws" according to Greg G. Calomiris and Haber tackle a very ambitious project here. They seek to do three things. First they offer a concise survey of the history of banking. Second, they advance a theory to explain why some countries have had much more stable banking systems than others. Third they attempt to use this theory to explain the recent financial crisis in the U.S.In my opinion, they succeed brilliantly in most of the historical summary. They do a respectable job of advancing a theory of banking stability. Unfortunately they do a terrible job when t. The Game of Bank Bargains Jim Moser Most materials covering this topic for the broader public explain the 2007-2009 financial crisis as the culmination of greed gone amok. Calomiris and Haber would not disagree that individuals are motivated by self interest. Well, of course they are! However, rather than stopping there they proceed to describe how the representatives of political systems too often fail their constituents. The authors do this via a thorough review of the banking histories of the United States and other countries. Their organizing principle for this revi. A Tour de Force The book was much broader, deeper and denser than I had expected. "Broader" in the scope of nations it studies -- substantial space is given to the development of the banking sector in the UK, USA, Canada, Mexico and Brazil, with further brief discussions on several more nations. I had been expecting a more-US-centric book. "Deeper" in that every one of the major chapters goes back at least two centuries, and of course more in the case of England, it goes back A Tour de Force MT57 The book was much broader, deeper and denser than I had expected. "Broader" in the scope of nations it studies -- substantial space is given to the development of the banking sector in the UK, USA, Canada, Mexico and Brazil, with further brief discussions on several more nations. I had been expecting a more-US-centric book. "Deeper" in that every one of the major chapters goes back at least two centuries, and of course more in the case of England, it goes back 4. Here again, I was expecting a purely contemporary account. And "denser" . . Here again, I was expecting a purely contemporary account. And "denser"

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. 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 be