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January/February 1993, 
Vol. 75, No. 1
Posted 1993-01-01

Remarks on Banking and Deposit Insurance

by Philip H. Dybvig

The author discusses the following: To what extent are banking functions part of the essential infrastructure of the economy that must be regulated or assisted by government? To what extent is banking just another industry—one that should be governed by the same rules as other industries? More specifically, is government-provided deposit insurance beneficial, unnecessary but harmless, or actually harmful?