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Innovations in Banking


Published May 12, 2022

While innovation in banking can be useful, innovating around bad regulations could create an unstable financial system, as we saw in 2008. Improving the system will require removing layers of regulation and starting from scratch.

Discussion Questions:

  1. Are the best solutions to problems always politically feasible? Why?
  2. In what ways has the Federal Reserve assumed a larger role than it has in the past?

Additional resources:

  • Watch “How Government Policy Inflates Health Care Costs: The Curse of Cross-Subsidies,” with John Cochrane on PolicyEd. Available here.
  • Watch “Does Government Debt Matter Anymore?” with John Cochrane on PolicyEd. Available here.
  • Read “Why Hasn’t the Fed Done More to Fight Inflation?” by John Cochrane via Chicago Booth Review. Available here.