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Financial crises are a feature, not a bug, of the US system

The US system is highly responsive to democratic, political and often populist demands. SVB sunk, in part, because in 2018, lobbying efforts by smaller banks allowed them to escape tougher rules created only a few years earlier – with bipartisan support. Politics deemed these banks weren’t systemically risky. But they were. Independent central banks may be good at inflation targeting and financial stability, but they struggle to help economic growth or helpful innovations

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​ The US system is highly responsive to democratic, political and often populist demands. SVB sunk, in part, because in 2018, lobbying efforts by smaller banks allowed them to escape tougher rules created only a few years earlier – with bipartisan support. Politics deemed these banks weren’t systemically risky. But they were. Independent central banks may be good at inflation targeting and financial stability, but they struggle to help economic growth or helpful innovations The US system is highly responsive to democratic, political and often populist demands. SVB sunk, in part, because in 2018, lobbying efforts by smaller banks allowed them to escape tougher rules created only a few years earlier – with bipartisan support. Politics deemed these banks weren’t systemically risky. But they were. Independent central banks may be good at inflation targeting and financial stability, but they struggle to help economic growth or helpful innovations  Moneycontrol Latest News Read More  

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