Edmund Phelps Banks Quotations

I've lived to see key parts of my research absorbed in textbooks and in central banks around the world. And some finance ministries, too.

Overpaying the banks for their toxic assets could contribute capital, but that may not be politically feasible or attractive.

Narrow banks could restart effective intermediation and ensure that consumers and employment-creating small and medium-size enterprises are adequately financed and can contribute to the reactivation of the economy.

Most of the big banks were shot through with short-termism, deceptive practices and self-dealing. We must institute basic changes in corporate governance and in management practice to restore responsibility and honesty for the sake of the economy and for the self-respect of the country.