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According to the article Runs on Banks and the Lessons of the Great Depression by Charles Calomiris, Bank runs represent a form of market discipline
According to the article "Runs on Banks and the Lessons of the Great Depression" by Charles Calomiris, Bank runs represent a form of market discipline and are rational responses to asymmetric information in the banking system Bank runs represent entirely irrational depositor behavior (pure panics) Bank deposit insurance causes banks to take less risk and therefore safer for depositors Empirical evidence from the Great Depression suggests that bank runs and bank failures affected both weak and strong banks equally
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