Cryptocurrencies, blockchain and decentralized finance were designed to address weaknesses in traditional finance, such as the systemic risk and government profligacy at the heart of many financial crises. Yet, failures of prominent crypto firms highlight the flaws in this argument. Crypto is...

Financial centers are best explained using D.W. Arner's "hub and spoke model". This explanation for financial centers essentially relies on scale economies. Given the clients' needs for a base and specialized financial services, base services are provided locally while specialized services are...