Wednesday, November 28, 2007

Anecdotes versus data

Here is another example where anecdotes can be more important than data:
In my view, the September 2007 bank run experienced by the British mortgage lender Northern Rock settles this debate once and for all – deposit insurance is essential to financial stability.
This is from Steve Cecchetti's Subprime Series, part 2: Deposit insurance and the lender of last resort

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