Nobel Laureate and bank run expert Douglas Diamond argues that the Fed’s choice to signal long-term low interest rates, and then suddenly reverse course by raising interest rates in response to inflation, is a major reason for the collapse at Silicon Valley Bank. Last week, Silicon Valley Bank collapsed. The bank had experienced over a … Continue reading Nobel Laureate Douglas Diamond on How the Fed Could Have Prevented SVB’s Collapse
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Nobel Laureate Douglas Diamond on How the Fed Could Have Prevented SVB’s Collapse
Nobel Laureate and bank run expert Douglas Diamond argues that the Fed’s choice to signal long-term low interest rates, and then suddenly reverse course by raising interest rates in response to inflation, is a major reason for the collapse at Silicon Valley Bank. Last week, Silicon Valley Bank collapsed. The bank had experienced over a … Continue reading Nobel Laureate Douglas Diamond on How the Fed Could Have Prevented SVB’s Collapse