Why does the use of short-term borrowing and being outside of the lender-of-lastresort system make shadow banks

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Why does the use of short-term borrowing and being outside of the lender-of-lastresort system make shadow banks vulnerable to events similar to bank runs?

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Macroeconomics

ISBN: 9781464110375

4th Edition

Authors: Paul Krugman, Robin Wells

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Question Posted: Feb 28, 2024 04:01 AM

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Why does the use of short-term borrowing and being outside of the lender-of-lastresort system make shadow banks

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A shadow bank is a financial institution that conducts banking activities outside of the regulated b...View the full answer

Macroeconomics

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