Admati Says Fragile System Is Inherent in Banking

The video discusses the fragility of the financial system, emphasizing the need to assess and reduce interconnectedness and indebtedness. It highlights the challenges of regulation, noting that both bankers and regulators face limitations. The concept of negative interest rates is explored, with a focus on its implications for the financial sector.

What are the challenges faced by regulators in ensuring the safety of the financial system?

How do negative interest rates challenge traditional financial concepts?