Banks Quote by Paul Krugman
“Close the weak banks and impose serious capital requirements on the strong ones...You see, it may sound hard-hearted, but you cannot keep unsound financial institutions operating simply because they provide jobs.”
About This Quote
Source Speech: Economic Policy Forum, 2010
Advocates strict regulation of weak banks while allowing strong banks to operate with fewer constraints, arguing that unsound institutions should not be kept alive solely for job preservation.
In simple terms: Regulate weak banks, keep strong ones flexible.
Targeted regulation improves stability.
Themes
Mood
Type
When to use this quote
- government policy
- banking sector
- public debate
Key Concepts
Questions to Reflect On
- How can we balance stability with fairness?
- What safeguards protect against over‑reliance on strong banks?
The approach may increase inequality between institutions and overlook systemic interdependence.