Last year, the Nobel Prize in Economics went to two economists who study the dynamics of bank runs, as well as to former US Federal Reserve chair Ben Bernanke for his work analyzing how central banks have dealt with some of history's worst banking crises, such as those in the Great Depression of the 1930s. Half a year later, we are witnessing another bank run whose contagious effects could destabilize economies, trigger recessions, and impose high costs on taxpayers. Banks play a double role in the economy, taking short-term deposits and savings and then using those savings to lend money over the long term in the ... (full story)