NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Too-Big-To-Fail Before the Fed

Gary Gorton, Ellis W. Tallman

NBER Working Paper No. 22064
Issued in March 2016
NBER Program(s):Development of the American Economy, Economic Fluctuations and Growth, Monetary Economics

“Too-big-to-fail” is consistent with policies followed by private bank clearing houses during financial crises in the U.S. National Banking Era prior to the existence of the Federal Reserve System. Private bank clearing houses provided emergency lending to member banks during financial crises. This behavior strongly suggests that “too-big-to-fail” is not the problem causing modern crises. Rather it is a reasonable response to the threat posed to large banks by the vulnerability of short-term debt to runs.

download in pdf format
   (216 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22064

Published: Gary Gorton & Ellis W. Tallman, 2016. "Too Big to Fail before the Fed," American Economic Review, American Economic Association, vol. 106(5), pages 528-32, May. citation courtesy of

Users who downloaded this paper also downloaded* these:
Gorton and Tallman w22036 How Did Pre-Fed Banking Panics End?
Ford and Horioka w22081 The "Real" Explanation of the Feldstein-Horioka Puzzle
Bordo and Meissner w22059 Fiscal and Financial Crises
Mishkin w11814 How Big a Problem is Too Big to Fail?
Caldara, Fuentes-Albero, Gilchrist, and Zakrajšek w22058 The Macroeconomic Impact of Financial and Uncertainty Shocks
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us