Returning to Narrow Banking

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Paul De Grauwe
Financial Markets, CEPS Commentaries
14 November 2008
3
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In this Commentary addressed to the G20 leaders meeting in Washington on November 15th, Paul De Grauwe argues that the solution to the financial crisis is to restrict banks to traditional, narrow banking with traditional oversight and guarantees while requiring financial firms involved in financial markets to more closely match the average maturities of their assets and liabilities.