In this presentation I examine the evolution of the financial system whereby the central bank controls a part of the money supply, but a growing segment of “shadow” banks issue a large amount of money supply. Being unregulated, these shadow banks operate by taking risks in the amount of credit they offer, leading to lack of confidence and consequent run on such banks. This often triggers instability of the entire financial system, leading to financial “bubbles.” The history of bubbles stretches from 1792 to 2023. I attempt to analyze the causes of these bubbles and what policies could prevent them.

Bio: Mohammed Dore did his doctoral studies at Oxford University in England. Now Emeritus Professor at Brock University, he was in the Economics Department for 35 years, during which he ran an externally financed “Climate Change Lab” at Brock. Apart from Climate Change, his research areas include water policy and macroeconomic theory and policy. His research has been funded by the Social Sciences and Humanities Research Council of Canada (SSHRC), Networks of Centres of Excellence (Canada), the now defunct Canadian Foundation for Atmospheric Sciences (CFCAS), as well the US National Science Foundation. He serves on the Editorial Board of the NDPLS.