This paper argues that an early 20th century central banker, had he been alive at the turn of the 21st century, would have predicted the 2007-08 crisis and its severity. This paper is Part II of a series which contends that early 20th century banking theory is a valuable framework for...

This paper introduces modern readers to the basic understanding of the banking system that was held by academics and practitioners in the early years of the 20th century – that is, to traditional banking theory. This theory is completely inconsistent with the theoretic framework that views...