American Economic Review Vol. 102 No. 3 2012
Three Principles for Market-Based Credit Regulation
Abstract
A key lesson of the financial crisis 2007-09 is that the Bagehot Rule, “lend freely but at a high rate,” needs to be updated for the emerging market-based credit system. A modern rule is suggested: Markets, not Banks; Outside spread, not Inside spread; Core, not Periphery.
- DOI
- 10.1257/aer.102.3.107
- Volume
- 102
- Issue
- 3
- Pages
- 107-112
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref