It’s Broke, Let’s Fix It: Rethinking Financial Regulation
by Alan S. Blinder
This paper considers a wide range of financial reform issues,
focusing on macroprudential regulation and on the recent
reforms in the United States—although the principles apply
globally. It emphasizes such issues as the needs for a systemic
risk regulator and an orderly resolution mechanism for systemically
important financial institutions, the risks posed by
proprietary trading and skewed compensation incentives, and
the design of new capital and liquidity requirements for banks.
Throughout, an attempt is made to relate concrete regulatory
proposals to the abstract principles that should govern
JEL Codes: G01, G18, G28, L51.
(PDF, 54 pages 305 kb)