Choosing the Narrative? The Shadow Banking Crisis in Light of COVID
22 Pages Posted: 2 Dec 2020
Date Written: November 1, 2020
Using a common two-sector framework, key features of these contrasting accounts of the market for banking services are presented, along with their corresponding diagnoses of what precipitated financial crisis. To see what the experience of Covid might imply about their relative credibility, four aspects of the current pandemic are considered: how it began from a small biological shock; how it gets spread by contagion; the significance of externalities; and how it may end with a vaccine. But the reader is left to form his or her own judgement.
JEL Classification: G01, G24, G41, Y8, Z13
Suggested Citation: Suggested Citation