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I think two books on this subject are extremely informative. One is _Stress Test_ by Timothy Geithner, the other is _The end of Alchemy_ by Mervyn King. Both h
by abakker 8y ago
I think two books on this subject are extremely informative. One is _Stress Test_ by Timothy Geithner, the other is _The end of Alchemy_ by Mervyn King.
Both have to do with the policies discussed in this article and the Lender of Last Resort (LOLR) policies implicit in the role of central banks.
You are describing the Moral Hazard risks that Geithner mostly dismisses as irrelevant in the moment, and which King believes needs to be removed from the system entirely. The combination of the two works gives a lot to think about.