Fighting Financial Crises: Learning from the Past

The book "Fighting Financial Crises" explores how pre-Fed banking panics in the United States during the National Banking Era (1863-1913) were similar to our recent financial crisis and how they were quelled and prevented. It also considers the reactions of the Federal Reserve and the SEC to the recent crisis, providing an informative perspective on how the modern economy works.

Format: Paperback / softback
Length: 256 pages
Publication date: 11 May 2021
Publisher: The University of Chicago Press

The ease with which we can access our bank funds today is a testament to the stability of the banking system. However, it is important to remember that a century ago, during the National Banking Era (1863-1913), bank customers faced significant concerns about the solvency of the banking system. The fear of bank collapse led many individuals to rush to withdraw their savings, often causing widespread panic.

Before the establishment of the Federal Reserve, banking panics were a common occurrence in the United States. These pre-Fed banking panics, as Gary B. Gorton and Ellis W. Tallman argue, share striking similarities with our recent financial crisis. Fighting Financial Crises thus delves into the past to gain a better understanding of our uncertain present. It examines how panics during the National Banking Era unfolded and how they were eventually contained and prevented.

The authors then explore the responses of the Federal Reserve and the Securities and Exchange Commission (SEC) to the recent crisis. By building an informative new perspective on how the modern economy functions, the book offers valuable insights into the challenges and opportunities facing financial institutions and policymakers alike.

In conclusion, the National Banking Era serves as a valuable historical reference point as we navigate the complexities of the modern financial landscape. By examining the lessons learned from past crises, we can better prepare ourselves for future challenges and work towards a more stable and secure financial system.

Weight: 378g
Dimension: 172 x 229 x 18 (mm)
ISBN-13: 9780226786209