TY  - JOUR
AU  - Flood,Robert P.
AU  - Garber,Peter M.
TI  - A Systematic Banking Collapse in a Perfect Foresight World
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 691
PY  - 1981
Y2  - June 1981
UR  - http://www.nber.org/papers/w0691
L1  - http://www.nber.org/papers/w0691.pdf
N1  - Author contact info:
Robert Flood
Notre Dame
E-Mail: rflood1@nd.edu

Peter M. Garber
Deutsche Bank
60 Wall Street
New York, NY 10005
Tel: 212/250-5466
Fax: 212/250-2628
E-Mail: peter.garber@db.com
AB  - In this paper we present a model in which a systematic banking collapse is possible in a perfect foresight, general equilibrium context. Our aim is to determine con3itions under which a collapse will eventually occur and the timing of such a collapse. The collapse can occur endogenously, driven by market fundamentals. Alternatively, it can be caused by a mass hysteria which generates itself in reality. Vie also compare the assumptions and implications of our model to the observable phenomena of the 1930's.
ER  -