Abstract
Bank runs are always associated with economy failure and investor panic in the literature. This paper explores the relationship between technology innovation and bank runs in a general equilibrium model. Intuitively, in a stable economy, which says no technology innovation, the return of capital accumulation is constant. But the return is subject to change when innovation happens and as a result, interest rates will change with return of investment. I point out that these changes are possible to result in banks run when some conditions are satisfied.
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