|Reading: Diamond, D.W., and Dybvig, P.H., 1983, “Bank Runs, Deposit Insurance, and Liquidity”, Journal of Political Economy, 91(3):401-419|
|Lecture handout: Banking crises*
Textbook Reading: Chapter 7 (Section 7.3; pp. 216-225)
|Learning Objectives: Understand the origins of money. Understand seminal models of bank runs.
Cutting edge theory: Making assessments of digital and crypto currencies.