Joseph Noss, Rhiannon Sowerbutts, Sunday, June 17, 2012 - 00:00

A credible threat of failure is an integral part of any industry. But this does not always apply to banks as failure may result in unacceptable economic costs. As a result, unprecedented amounts of public money have been used to avert bank failure. This column explains why the subsidy arises, why it is a public policy concern, and how it can be quantified.

CEPR Policy Research