Question A:
A common European deposit insurance scheme, once fully implemented, would increase the stability of European economies in the event of another financial crisis.
Responses
© 2025. Kent A. Clark Center for Global Markets.
24%
4%
0%
8%
4%
38%
22%
Responses weighted by each expert's confidence
© 2025. Kent A. Clark Center for Global Markets.
0%
10%
3%
55%
32%
Question B:
A common European deposit insurance scheme, once fully implemented, would increase the likelihood of another financial crisis in Europe.
Responses
© 2025. Kent A. Clark Center for Global Markets.
24%
4%
24%
24%
16%
8%
0%
Responses weighted by each expert's confidence
© 2025. Kent A. Clark Center for Global Markets.
38%
34%
18%
11%
0%
Question A Participant Responses
Participant |
University |
Vote |
Confidence |
Bio/Vote History |
|---|---|---|---|---|
 Franklin Allen |
Imperial College London | Bio/Vote History | ||
|
Theoretically it can go both ways as deposit insurance can increase risk taking. Empirically there is some evidence crises can increase.
-see background information here |
||||
 Pol Antras |
Harvard | Bio/Vote History | ||
|
|
||||
 Agnès Bénassy-Quéré |
Paris School of Economics | Bio/Vote History | ||
|
|
||||
 Timothy J. Besley |
LSE | Did Not Answer | Bio/Vote History | |
|
|
||||
 Olivier Blanchard |
Peterson Institute | Bio/Vote History | ||
|
|
||||
 Nicholas Bloom |
Stanford | Bio/Vote History | ||
|
|
||||
 Richard William Blundell |
University College London | Did Not Answer | Bio/Vote History | |
|
|
||||
 Elena Carletti |
Bocconi | Bio/Vote History | ||
|
|
||||
 Jean-Pierre Danthine |
Paris School of Economics | Bio/Vote History | ||
|
|
||||
 Paul De Grauwe |
LSE | Did Not Answer | Bio/Vote History | |
|
|
||||
 Jan Eeckhout |
UPF Barcelona | Bio/Vote History | ||
|
|
||||
 Ernst Fehr |
Universität Zurich | Bio/Vote History | ||
|
|
||||
 Xavier Freixas |
Barcelona GSE | Bio/Vote History | ||
|
|
||||
 Nicola Fuchs-Schündeln |
Goethe-Universität Frankfurt | Bio/Vote History | ||
|
|
||||
 Jordi Galí |
Barcelona GSE | Bio/Vote History | ||
|
|
||||
 Luis Garicano |
LSE | Did Not Answer | Bio/Vote History | |
|
|
||||
 Francesco Giavazzi |
Bocconi | Bio/Vote History | ||
|
|
||||
 Rachel Griffith |
University of Manchester | Bio/Vote History | ||
|
|
||||
 Veronica Guerrieri |
Chicago Booth | Bio/Vote History | ||
|
|
||||
 Luigi Guiso |
Einaudi Institute for Economics and Finance | Bio/Vote History | ||
|
|
||||
 Patrick Honohan |
Trinity College Dublin | Bio/Vote History | ||
|
Though not the most valuable form of cross-border risk-sharing
|
||||
 Beata Javorcik |
University of Oxford | Bio/Vote History | ||
|
|
||||
 Henrik Kleven |
Princeton | Did Not Answer | Bio/Vote History | |
|
|
||||
 Botond Kőszegi |
Central European University | Did Not Answer | Bio/Vote History | |
|
|
||||
 Jan Pieter Krahnen |
Goethe University Frankfurt | Bio/Vote History | ||
|
“Fully implemented” implies implementation in a way that minimizes moral hazard, e.g. through a European reinsurance scheme.
|
||||
 Per Krusell |
Stockholm University | Bio/Vote History | ||
|
A common system appears constraining, given differences in financial systems across countries.
|
||||
 Eliana La Ferrara |
Harvard Kennedy | Bio/Vote History | ||
|
|
||||
 Christian Leuz |
Chicago Booth | Bio/Vote History | ||
|
In principle effect of DI in crisis is clear, but for EU DI much depends on implementation and harmonization. EU has mixed record on that.
-see background information here -see background information here |
||||
 Thierry Mayer |
Sciences-Po | Did Not Answer | Bio/Vote History | |
|
|
||||
 Costas Meghir |
Yale | Bio/Vote History | ||
|
|
||||
 Peter Neary |
Oxford | Did Not Answer | Bio/Vote History | |
|
|
||||
 Kevin O'Rourke |
Oxford | Bio/Vote History | ||
|
|
||||
 Marco Pagano |
Università di Napoli Federico II | Bio/Vote History | ||
|
Actually, creating a euro-wide deposit insurance system is a necessary element to complete the Banking Union and stabilise Europe's banks.
-see background information here |
||||
 Lubos Pastor |
Chicago Booth | Bio/Vote History | ||
|
|
||||
 Torsten Persson |
Stockholm University | Did Not Answer | Bio/Vote History | |
|
|
||||
 Christopher Pissarides |
London School of Economics and Political Science | Did Not Answer | Bio/Vote History | |
|
|
||||
 Richard Portes |
London Business School | Bio/Vote History | ||
|
|
||||
 Canice Prendergast |
Chicago Booth | Bio/Vote History | ||
|
|
||||
 Lucrezia Reichlin |
London Business School | Bio/Vote History | ||
|
|
||||
 Rafael Repullo |
CEMFI | Bio/Vote History | ||
|
|
||||
 Hélène Rey |
London Business School | Did Not Answer | Bio/Vote History | |
|
|
||||
 Antoinette Schoar |
MIT | Bio/Vote History | ||
|
A common scheme prevents a race to the bottom in the event of a crisis, and should include a fair contributn system across countries exante
|
||||
 Daniel Sturm |
London School of Economics | Bio/Vote History | ||
|
|
||||
 John Van Reenen |
LSE | Bio/Vote History | ||
|
|
||||
 John Vickers |
Oxford | Bio/Vote History | ||
|
But other measures matter more -- e.g. depositor preference for insured deposits. Then, if(??) resolution works, deposits are safe anyway.
|
||||
 Hans-Joachim Voth |
University of Zurich | Bio/Vote History | ||
|
|
||||
 Beatrice Weder di Mauro |
The Graduate Institute, Geneva | Bio/Vote History | ||
|
|
||||
 Karl Whelan |
University College Dublin | Bio/Vote History | ||
|
A common deposit insurance scheme will somewhat weaken the bank runs that occur in euro area countries with fiscal or banking problems.
|
||||
 Charles Wyplosz |
The Graduate Institute Geneva | Bio/Vote History | ||
|
Helps break the doom loop
|
||||
 Fabrizio Zilibotti |
Yale University | Did Not Answer | Bio/Vote History | |
|
|
||||
Question B Participant Responses
Participant |
University |
Vote |
Confidence |
Bio/Vote History |
|---|---|---|---|---|
|
Franklin Allen |
Imperial College London | Bio/Vote History | ||
|
Complicated issue because of the effect of deposit insurance on risk taking.
-see background information here |
||||
|
Pol Antras |
Harvard | Bio/Vote History | ||
|
|
||||
|
Agnès Bénassy-Quéré |
Paris School of Economics | Bio/Vote History | ||
|
|
||||
|
Timothy J. Besley |
LSE | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Olivier Blanchard |
Peterson Institute | Bio/Vote History | ||
|
|
||||
|
Nicholas Bloom |
Stanford | Bio/Vote History | ||
|
|
||||
|
Richard William Blundell |
University College London | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Elena Carletti |
Bocconi | Bio/Vote History | ||
|
|
||||
|
Jean-Pierre Danthine |
Paris School of Economics | Bio/Vote History | ||
|
|
||||
|
Paul De Grauwe |
LSE | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Jan Eeckhout |
UPF Barcelona | Bio/Vote History | ||
|
|
||||
|
Ernst Fehr |
Universität Zurich | Bio/Vote History | ||
|
|
||||
|
Xavier Freixas |
Barcelona GSE | Bio/Vote History | ||
|
Empirical evidence on emerging countries seems to indicate this. Could we extrapolate to Europe? Not obvious
|
||||
|
Nicola Fuchs-Schündeln |
Goethe-Universität Frankfurt | Bio/Vote History | ||
|
|
||||
|
Jordi Galí |
Barcelona GSE | Bio/Vote History | ||
|
Not with adequate supervision and macroprudential policies
|
||||
|
Luis Garicano |
LSE | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Francesco Giavazzi |
Bocconi | Bio/Vote History | ||
|
|
||||
|
Rachel Griffith |
University of Manchester | Bio/Vote History | ||
|
|
||||
|
Veronica Guerrieri |
Chicago Booth | Bio/Vote History | ||
|
|
||||
|
Luigi Guiso |
Einaudi Institute for Economics and Finance | Bio/Vote History | ||
|
|
||||
|
Patrick Honohan |
Trinity College Dublin | Bio/Vote History | ||
|
Removing bank default risk from small depositors would not imply a dangerous subsidy of risk-taking by supervised banks
|
||||
|
Beata Javorcik |
University of Oxford | Bio/Vote History | ||
|
|
||||
|
Henrik Kleven |
Princeton | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Botond Kőszegi |
Central European University | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Jan Pieter Krahnen |
Goethe University Frankfurt | Bio/Vote History | ||
|
No, it would not iprovided it is implemented cleverly, e.g. relying on a reinsurance scheme.
|
||||
|
Per Krusell |
Stockholm University | Bio/Vote History | ||
|
Moral hazard is relevant but so is a risk of runs. I’m not an expert.
|
||||
|
Eliana La Ferrara |
Harvard Kennedy | Bio/Vote History | ||
|
|
||||
|
Christian Leuz |
Chicago Booth | Bio/Vote History | ||
|
Clear tradeoff w/ ex ante moral hazard. Evidence supports this & some suggests ex ante effect dominates but much depends on supervision.
-see background information here -see background information here -see background information here |
||||
|
Thierry Mayer |
Sciences-Po | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Costas Meghir |
Yale | Bio/Vote History | ||
|
|
||||
|
Peter Neary |
Oxford | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Kevin O'Rourke |
Oxford | Bio/Vote History | ||
|
|
||||
|
Marco Pagano |
Università di Napoli Federico II | Bio/Vote History | ||
|
Quite the opposite: it is essential for systemic stability of the banking system. Of course, if it is well designed!
-see background information here |
||||
|
Lubos Pastor |
Chicago Booth | Bio/Vote History | ||
|
|
||||
|
Torsten Persson |
Stockholm University | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Christopher Pissarides |
London School of Economics and Political Science | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Richard Portes |
London Business School | Bio/Vote History | ||
|
|
||||
|
Canice Prendergast |
Chicago Booth | Bio/Vote History | ||
|
|
||||
|
Lucrezia Reichlin |
London Business School | Bio/Vote History | ||
|
|
||||
|
Rafael Repullo |
CEMFI | Bio/Vote History | ||
|
|
||||
|
Hélène Rey |
London Business School | Did Not Answer | Bio/Vote History | |
|
|
||||
|
Antoinette Schoar |
MIT | Bio/Vote History | ||
|
|
||||
|
Daniel Sturm |
London School of Economics | Bio/Vote History | ||
|
|
||||
|
John Van Reenen |
LSE | Bio/Vote History | ||
|
|
||||
|
John Vickers |
Oxford | Bio/Vote History | ||
|
Uncertain because could distract from more fundamental issues such as the need for European banks to have much more capital
|
||||
|
Hans-Joachim Voth |
University of Zurich | Bio/Vote History | ||
|
|
||||
|
Beatrice Weder di Mauro |
The Graduate Institute, Geneva | Bio/Vote History | ||
|
|
||||
|
Karl Whelan |
University College Dublin | Bio/Vote History | ||
|
While there is possibly an element of moral hazard with deposit insurance, crisis are generally due to inadequate banking regulation.
|
||||
|
Charles Wyplosz |
The Graduate Institute Geneva | Bio/Vote History | ||
|
Regulation and supervision needs to be strong
|
||||
|
Fabrizio Zilibotti |
Yale University | Did Not Answer | Bio/Vote History | |
|
|
||||
