Nobel Laureate Douglas Diamond on How the Fed Could Have Prevented SVB’s Collapse

Nobel Laureate and bank run expert Douglas Diamond argues that the Fed’s choice to signal long-term low interest rates, and then suddenly reverse course by raising interest rates in response to inflation, is a major reason for the collapse at Silicon Valley Bank. Last week, Silicon Valley Bank collapsed. The bank had experienced over a … Continue reading Nobel Laureate Douglas Diamond on How the Fed Could Have Prevented SVB’s Collapse