Discuss whether regulations in addition to a lender of the last resort are needed for the efficient operation of the financial system.
https://voxeu.org/article/interbank-contagion-during-depression “Interbank Contagion during the Depression and its implications for Regulation today” answer the following questions: 1. Drawing on the details in case study material, explain how interbank connections can affect the exposure of individual banks and the banking system to liquidity risk. 2. Use economic theory and the evidence provided in the case study […]