[MUSIC]
Part of what determines how dangerous crises are is what policy makers do and
are able to do in response to that.
Why not talk about some of the most important dimensions of financial capacity
that again are ultimately critical in determining how bad these things have to
be or how bad these things can be.
This is a picture, of a bank in China in 2014
that was experiencing a classic run.
I think it was a, sort of a slow walk at that time.
People were concerned the bank was not stable.
And what this bank did which is the typical response in financial panics,
is to stack a bunch of money in the window.
To try to illustrate to the depositors they didn't need to rush to withdraw their
funds because there is plenty of money there for them.
And this is important because you if you want to think about how you break panics.