The banking crises in 2007-10 are not exceptional. There have been many such crises in the past in both developed countries and emerging economies. A banking crisis can be related to solvency or liquidity (or both). This book focuses on banking crisis and liquidity. This book starts from basics and gradually builds up with very few technicalities. Though the analysis is primarily theoretical, we provide a historical background, a macroeconomic perspective, and policy implications for both closed and open economies.

chapter 1|14 pages


chapter 2|9 pages

Bank solvency and systemic stability

chapter 4|14 pages

Literature review, and the road ahead

chapter 7|12 pages

Systemic bank runs under the gold standard

chapter 11|11 pages

Bank runs and the broad policy framework

chapter 14|18 pages

More on banking crises and liquidity

chapter 15|7 pages

Theory and experience

chapter 16|10 pages