Admati on Bank Regulation and the Bankers' New Clothes - a podcast by EconTalk: Russ Roberts, Library of Economics and Liberty

Anat Admati of Stanford University talks with EconTalk host Russ Roberts about her new book (co-authored with Martin Hellwig), The Bankers' New Clothes. Admati argues that the best way to reduce the fragility of the banking system is to increase capital requirements--that is, require banks to finance their activities with a greater proportion of equity rather than debt. She explains how debt magnifies returns and losses while making each bank more fragile. Despite claims to the contrary, she argues that the costs of reducing debt are relatively small for society as a whole while the benefits are substantial.

Further episodes of 301 Moved Permanently

Further podcasts by EconTalk: Russ Roberts, Library of Economics and Liberty

Website of EconTalk: Russ Roberts, Library of Economics and Liberty