FBD listed in the Financial Times’ summer book list

Financial Times
June 27, 2014

summer-books-FT2The FT‘s summer books 2014
From flash trading to the perfect penalty, FT writers and guests pick their books of the year so far

Fragile by Design: The Political Origins of Banking Crises and Scarce Credit, by Charles W Calomiris and Stephen H Haber, Princeton University Press, RRP£24.95/$35

We get the banking systems we deserve or, more precisely, that our political systems choose. The US has had 12 systemic banking crises since 1840, while Canada has had none. In some cases, therefore, the outcome of political bargaining is stability and in other apparently not dissimilar cases it is instability. Better awareness of how the political forces work might lead to superior bargains. But this informative book does not leave the reader optimistic. It is hard to shift bad political equilibria…