In this case, the externality occurs because lenders, investors, and  11  For examples, see Kristopher Gerardi, Andreas Lehnert, Shane M. Sherlund, and Paul S. Willen (2008), “Making Sense of the Subprime Crisis ,” Brookings Papers on Economic Activity (Washington: Brookings Institution Press, Fall), pp.
All of them, and their regional and municipal governments, and their state bodies, not to speak of their commercial and social institutions, have emblems of their authority and gold will in most cases be the natural choice for such prominent instruments.