The Panic of 1857 as a Bank-Initiated Banking Panic
Marini, François (2005), The Panic of 1857 as a Bank-Initiated Banking Panic, XXIIèmes Journées d’Economie Monétaire et Bancaire, 2005-06, Strasbourg, France
TypeCommunication / Conférence
Conference titleXXIIèmes Journées d’Economie Monétaire et Bancaire
MetadataShow full item record
Abstract (EN)We construct a model in which a banking panic is triggered by the banker, not the depositors. When a banker receives a pessimistic information on the return of the bank s assets, he liquidates them prematurely in order to protect his capital. In the face of this liquidation, all depositors withdraw their funds prematurely. Such a panic occured in 1857. This kind of banking panic occurs at sufficiently capitalized banks.
Subjects / Keywordsbanking panic; panic of 1857; credit crunch
Showing items related by title and author.
Banks as Masters of Debt, Cost Calculators, and Risk-sharing Mediators : A Discreet Regulatory Role in the Case of French Public-Private Partnerships Penalva-Icher, Elise; Lazega, Emmanuel; Jeny-Cazavan, Anne; Richard, Chrystelle (2012) Chapitre d'ouvrage
Does debt relief “irresistibly attract banks as honey attracts bees”? Evidence from low-income countries’ debt relief programs Ferry, Marin; Raffinot, Marc; Venet, Baptiste (2021) Article accepté pour publication ou publié