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The Danger of Forgetting the 2023 Banking Crisis

Apart from die-hard libertarians, no one seems to care much about the extent of the intervention that was needed to rescue smaller US banks in March 2023, nor has there been any broad inquiry into the circumstances that led to the vulnerabilities. As a result, several questions remain unanswered.

CHICAGO – Almost a year after the mini banking crisis in the United States, it is worth revisiting the episode. Was it just a tempest in a teacup? Was there really a systemic threat, or was it just a problem with a few banks? Should the interventions by the US Federal Reserve and Treasury worry or comfort us?