The Banking Crisis: Causes, Consequences and Remedies

Abstract

In order to analyse the causes of the banking crisis it is useful to start from the basics of banking. 1 Banks are in the business of borrowing short and lending long. In doing so they provide an essential service to the rest of us, that is, they create credit that allows the real economy to grow and expand. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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