This collection of articles by economists and historians of banking examines the question of financial crises and crashes in recent years. Theories and interpretations concerning the most recent financial crisis are first presented, followed by a debate concerning the ability of financial...

Introduction / Edward L. Glaeser, Tano Santos, and E. Glen Weyl -- Stochastic compounding and uncertain valuation / Lars Peter Hansen and José A. Scheinkman -- The good banker / Patrick Bolton -- How to implement contingent capital / Albert S. Kyle -- Bankruptcy laws and collateral regulation:...

The devastating events that beset financial markets in the summer of 2007 led to a huge contraction in global economic output and left the financial and banking systems in the core economies of the United Kingdom, United States and Europe on the brink of destruction. The ensuing fallout from...