Some economists argue that deregulating the interest rates that could be paid on deposits combined with deposit insurance led to the insolvency of many depository institutions. On what basis do they make such an argument?
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" Prior to the 1980s, there were regulations in place that limited the interest rates that banks and other depository institutions could offer on deposits. These regulations were put in place to prevent banks from engaging in a "rate war" in which they would offer Show more…
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