Paul Krugman

@paulkrugman ↗

Deleted No

Hibernated No

Last Checked Oct. 27, 2022

Created

Mon Oct 10 13:23:15 +0000 2022

Likes

265

Retweets

Source

Twitter Web App

View Raw Data

JSON Data

View on Twitter

Likely Available

Paul Krugman @paulkrugman

If you're a normal human being, the paper might not look simple or even comprehensible. But trust me: they wrote down more or less the simplest possible model of what banking does, why it serves a useful purpose, but why it's vulnerable to self-fulfilling panics 2/ — PolitiTweet.org

Posted Oct. 10, 2022

Preceded By

Paul Krugman @paulkrugman

OK, some notes on the classic Diamond-Dybvig paper on bank runs, which exemplified the kind of economic analysis I've always loved: a (relatively) simple model that transforms your understanding, so that you'll never see things the same way again 1/ https://t.co/d41AvgijO1 — PolitiTweet.org

Posted Oct. 10, 2022

Followed By

Paul Krugman @paulkrugman

The idea is that people want liquidity — ready access to their wealth if needed — but that productive investment requires tying up a lot of wealth in illiquid assets that can't be quickly converted into cash 3/ — PolitiTweet.org

Posted Oct. 10, 2022