Deposit insurance and risk taking

We review the theory of deposit insurance, highlighting the underlying assumptions that were not satisfied during the recent financial crisis and that may have led to serious policy mistakes. In theoretical models, deposit insurance is mostly seen as an equilibrium selection device to avoid panic-ba...

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Bibliographic details
Volume: 27
Main Author: Carletti, Elena
Allen, Franklin
Leonello, Agnese
Format: Journal Article
Language: English
Place of publication: Oxford University Press 2011
published in: Oxford Review of Economic Policy Vol. 27; no. 3; pp. 464 - 478
Data of publication: 2011
Series: Oxford Review of Economic Policy
Online Access: available in Bonn?
Database: RePEc
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