As the Choice and Consequence box on Too Big to Fail notes, bank regulators worry about the

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As the Choice and Consequence box on “Too Big to Fail” notes, bank regulators worry about the prospect of the failure of large financial institutions, dubbed “systemically important financial institutions” (SIFIs).

a. How would the failure of a SIFI affect the economy?

b. What steps do bank regulators take to prevent SIFIs from failing or to minimize the effect of such failures?

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Macroeconomics

ISBN: 9780367752279

Global Edition

Authors: Acemoglu Daron, Laibson David, List John.

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