Many people want to put size limits on “too big to fail” banks, given their risks to the broader economy. Such limits, however, could raise the cost of providing banking services by preventing banks from exploiting economies of scale.
Conventional wisdom holds that if policymakers are too focused on controlling inflation, then employment, output growth and financial stability will suffer. But the conventional wisdom is wrong, according to the data.
It's not the total number of people that should be causing worry, but the number of retired people relative to those still working. Across the world, the ranks of retirees are swelling as the ranks of those working—and paying taxes to support retirees—are not keeping up. Something—or someone—has got to give.
In the cover story, find out why some bankers are encouraging Congress to raise the ceiling for insurance on deposits to $130,000 from $100,000 per account. Opponents point out that in the wake of the last increase, the S&L crisis occurred.
What may happen if the coverage ceiling is lifted.
The development of the microchip sparked another industrial revolution. But will this revolution yield the long-term surge in productivity that the First and Second industrial revolutions produced?
What the association of severe financial instability with fluctuations in the price level historically say.