Bailouts more likely in unequal democracies, research finds
Accountable governments face pressure to preserve banks
Bank bailouts in times of systemic crisis may attract public anger, but history suggests they may often be a response to public pressure, according to research presented on November 17 at a conference at the London School of Economics and Political Science (LSE).
The LSE's Jeffrey Chwieroth and Andrew Walter of the University of Melbourne used a dataset of 122 policy responses to systemic banking crises since 1976, and categorised each one on a scale from the traditional 'Bagehot' response at
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