Banks need to keep both capital and liquidity against unforeseen events.During the early-mid nineteenth century, there were a number of banking crises. Banks responded by holding higher levels of capital.An analysis of bank capital shows that they adjusted their capital ratios according to the...

Money, Prices and the Real Economy was first published in 1998, but the analysis in the book is timeless and highly relevant today. The IEA has published a web version particularly for students and scholars. The book can still be purchased from Edward Elgar