What have we learnt about money and banking during and since the Great Recession?
by Professor Charles Goodhart
This paper was delivered on 2nd November 2016 as part of the first conference held by the Institute of International Monetary Research. Professor Goodhart is Emeritus Professor of Banking and Finance at the London School of Economics and was a member of the Bank of England's Monetary Policy Committee from 1997 until 2000. He has written six books on the subject of money and banking.
Banking and finance in the early years of the United States of America were chaotic. Two of the founding fathers - Thomas Jefferson and James Madison - were hostile to banking, since the issue of paper money led to inflation and default. According to Jefferson,
"...banking establishments are more dangerous than standing armies"
The Great Recession of 2008 - 09 renewed concern about the potential role of the banking system in social and financial instability, and argued for more research and analysis about this critical topic.