Emil Verner on Banking Crises, Credit Booms, and the Rise of Populism

埃米尔·维尔纳谈银行业危机、信贷繁荣和民粹主义的兴起

Macro Musings with David Beckworth

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2024-11-18

55 分钟
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Emil Verner is an associate professor of finance at MIT Sloan and is a research fellow at the National Bureau of Economic Research. Emil has written widely on financial stability, banking panics, and credit booms, and he joins David on Macro Musings to talk about these issues. Specifically, David and Emil also discuss the causes and policy implications of bank failures, the shortcomings of the Diamond-Dybvig model of bank runs, how financial crises spur the rise of populism, and much more.   Transcript for this week’s episode.   Register now for Building a Better Fed Framework: The AIER Monetary Conference.   Emil’s Twitter: @EmilVerner Emil’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Failing Banks* by Sergio Correia, Stephan Luck, and Emil Verner   *Banking Crises Without Panics* by Matthew Baron, Emil Verner, and Wei Xiong   *Financial Crisis, Creditor-Debor Conflict, and Populism* by Gyozo Gyongyosi and Emil Verner   *Fragile by Design: The Political Origins of Banking Crises and Scarce Credit* by Charles Calomiris and Stephen Haber   *Going to Extremes: Politics After Financial Crises, 1870-2014* by Manuel Funke, Moritz Schularick, and Christoph Trebesch   Timestamps:   (00:00:00) – Intro   (00:03:45) – Why Do We Care About Banking Panics and Financial Stability?   (00:05:42) – Breaking Down the Causes of Bank Failures and its Policy Implications   (00:13:38) – Exploring the Historical Banking Data   (00:15:59) – *Failing Banks*: Key Findings and Takeaways   (00:24:00) – *Banking Crises Without Panics*   (00:28:05) – Responding to the Diamond-Dybvig Model of Bank Runs   (00:33:29) – Applying the Bank Solvency Story to the Great Financial Crisis   (00:36:16) – The Impact of Credit Booms   (00:40:56) – What Are the Necessary Policy Prescriptions?   (00:43:08) – Why is Diamond-Dybvig So Popular?   (00:47:01) – *Financial Crisis, Creditor-Debtor Conflict, and Populism*   (00:52:55) – How Do We Stem the Tide of Populism in the Future?   (00:54:36) – Outro
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  • Welcome to Macro Musings, where each week we pull back the curtain and take a closer look at the most important macroeconomic issues of the past, present and future.

  • I am your host, David Beckwourth, a senior research fellow at the Mercatus center at George Mason University.

  • And I'm glad you decided to join us.

  • Our guest today is Emil Verner.

  • Emil is an associate professor of finance at MIT Sloan and a research fellow at the National Bureau of Economic Research.

  • Emil has written widely on financial stability, banking panics and credit booms and joins us today to discuss them.

  • Emil, welcome to the program.

  • Thanks a lot for having me.

  • Big fan of the show.

  • Well, it's great to have you, Juan.

  • And you have quite the publication record already in the top five journals.

  • Of course, you're at a place where they probably expect the top five journals to be had.

  • And you're an associate professor at mit.

  • Great program and just a lot of interesting readers research.

  • And what really caught my eye is this paper.

  • It's made a big splash.

  • Failing banks.

  • And we're going to get to that.

  • But really fascinating paper, and I'm hoping it really kind of changes the narrative, the dominant narrative that's out there, the diamond did big model framing.

  • We'll come back to that point in a bit.