Economic and Regulatory Policy

MOST RECENT COMMENTARY

Mark Roe

European leaders are seriously considering a Tobin tax, which would put a small levy on financial transactions, thereby dampening trading. But that is neither a desirable outcome nor an appropriate goal.

Comments:2 Recommended:0 Read:7080

RECENT COMMENTARIES

FEATURED COMMENTARIES

The Public and Its Problems

Raghuram Rajan Series: In Search of Dynamism

2012-02-13

Why, many Europeans are wondering nowadays, do their politicians fail to see the abyss that yawns before them, and come together to resolve the euro crisis once and for all?But, if leaders in Europe (and America) appear short-sighted and indecisive, the fault may lie with us, the public, for not listening to the worrywarts.... read

Comments: 9 Recommended: 0 Read: 12247

Central Bankers in the Line of Fire

Luigi Zingales Series: The Rules Of The Game

2012-02-02

The decision in January by Philipp Hildebrand to resign as Chairman of the Board of the Swiss National Bank, after a suspicious trade made by his wife, is to be welcomed. But, while Hildebrand’s resignation should serve as a precedent to be followed elsewhere, the circumstances surrounding his departure smell much worse than what caused it.... read

Comments: 0 Recommended: 0 Read: 8395

A Crisis in Two Narratives

Raghuram Rajan Series: In Search of Dynamism

2012-01-27

With the world’s industrial democracies in crisis, two competing narratives of its sources – and appropriate remedies – are emerging. For better or worse, the narrative that persuades these countries’ governments and publics will determine their future – and that of the global economy.... read

Comments: 11 Recommended: 1 Read: 35152

The Eurozone’s Strategy of Pain

Jean Pisani-Ferry Series: Reuniting Europe

2012-01-25

For the third year in a row, the eurozone is the weakest link in the world economy, with concerns mounting about its very viability. But the eurozone is doubling down on austerity, reasoning that no pain in Southern Europe would mean no gain in reform and adjustment.... read

Comments: 3 Recommended: 0 Read: 9619

Reforming Repo Rules

Mark Roe Series: The Rules Of The Game

2011-12-21

This October, the derivatives firm MF Global filed for bankruptcy after losing more than $1 billion of its customer's funds in a number of complex "repos," or repurchase agreements. Until repos are reformed, the stability of the global financial system will remain at risk.... read

Comments: 5 Recommended: 0 Read: 11784

The Worst and the Best of Austerity

Jean Pisani-Ferry Series: Reuniting Europe

2011-12-15

Austerity is the only option for eurozone countries that no longer have access to capital markets. But, for others, nibbling at the edges of a deficit in the current crisis is at best a sideshow, and at worst a recipe for recession at a time when all signs point to an economic downturn.... read

Comments: 9 Recommended: 0 Read: 15947

Winning the European Confidence Game

Raghuram Rajan Series: In Search of Dynamism

2011-12-06

If any solution to the European crisis proposed over the next few days is to restore confidence to the sovereign-bond markets, it will have to be both economically viable and politically palatable to rescuers and rescued alike. This means paying attention not just to the plan’s technical details, but also to appearances.... read

Comments: 4 Recommended: 2 Read: 15196

Elected Dirty Dealers

Luigi Zingales Series: The Rules Of The Game

2011-11-29

The US Congress, like legislatures elsewhere, effectively exempts itself from the normal rules of insider trading. But the real issue is not just insider trading – it's that Congress and other legislatures live by rules that are very different from those imposed on ordinary citizens.... read

Comments: 0 Recommended: 0 Read: 7326

The German Hour

Jean Pisani-Ferry Series: Reuniting Europe

2011-11-28

A series of events over the last few weeks have set in motion a downward spiral for the eurozone. Unless officials – especially German officials – act fast, financial markets’ verdict will be ruthless.... read

Comments: 3 Recommended: 1 Read: 10067

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How Inequality Fueled the Crisis

Raghuram Rajan Series: In Search of Dynamism

2010-07-09

Before the recent financial crisis, politicians from both political parties in the US egged on Fannie Mae and Freddie Mac, the giant government-backed mortgage agencies, to support low-income lending in their constituencies. There was a deeper concern behind this newly discovered passion for housing for the poor: growing income inequality.... read

Comments: 10 Recommended: 1 Read: 64376

Money Magic

Raghuram Rajan Series: In Search of Dynamism

2011-06-08

More than any other area of official policymaking, monetary policy suffers from the sense that there is a free lunch to be had. But there is a high price to be paid for the ultra-loose monetary policy that many countries are maintaining – and not only in terms of higher inflation.... read

Comments: 12 Recommended: 2 Read: 42061

A Crisis in Two Narratives

Raghuram Rajan Series: In Search of Dynamism

2012-01-27

Comments: 11 Recommended: 1 Read: 35152

Credit Default Swaps on Trial

Luigi Zingales Series: The Rules Of The Game

2010-04-19

Credit default swaps, once an esoteric product known only to a small number of sophisticated investors and specialized academics, are now widely blamed as one of the main causes of the financial crisis. That odious reputation is jeopardizing their survival, but to ban them would merely sow the seeds of the next financial bubble.... read

Comments: 2 Recommended: 0 Read: 33722

The Making of International Monetary Reform

Jean Pisani-Ferry Series: Reuniting Europe

2010-12-23

The run-up to the G-20 summit in Seoul was marred by a series of currency controversies, bringing international monetary reform to the fore. But the task is anything but simple: the subject is abstruse, and no one outside academia has taken any interest in it for the last 20 years.... read

Comments: 0 Recommended: 0 Read: 32709

Demand or Supply?

Raghuram Rajan Series: In Search of Dynamism

2011-01-07

Typically, supply and demand are equal, and, if not, powerful forces push them towards each other. But, with high and persistent levels of unemployment in the US, there is a real question about the nature of the problem: is aggregate demand too low, or are there problems with supply?... read

Comments: 7 Recommended: 1 Read: 31271

Is Inflation the Answer?

Raghuram Rajan Series: In Search of Dynamism

2011-09-08

Recently, a number of commentators have proposed a sharp, contained bout of inflation as a way to reduce debt and reenergize growth in the US and the rest of the industrial world. But, while is an attractive solution at first glance, a closer look reveals cause for serious concern.... read

Comments: 5 Recommended: 1 Read: 31003

The False Promise of Global Governance Standards

Lucian Bebchuk Series: The Rules Of The Game

2009-05-07

Last year's global financial meltdown has naturally spurred interest in bringing about improvements in corporate governance, including reliable standards for evaluating its quality in publicly traded companies. But the quest for a single set of global governance standards is misguided.... read

Comments: 0 Recommended: 0 Read: 30919

Toxic Tests

Lucian Bebchuk Series: The Rules Of The Game

2009-06-18

The US government is now permitting ten of America’s biggest banks to repay about $70 billion of the capital injected into them last fall, after the banks passed so-called “stress tests” and raised additional capital. But neither the stress tests, which G-8 finance ministers have now agreed to replicate, nor the ability to raise fresh capital prove that the banks are truly healthy. ... read

Comments: 0 Recommended: 0 Read: 29688

Jobless Recoveries and Manic Policies	Raghuram Rajan
America's fiscal and monetary policies are so accommodating in large part because the nature of US economic recoveries has changed since 1991, with output and employment taking much longer to return to their pre-recession levels. But such policies do not stimulate faster recovery, and US politicians should focus instead on modifying America's outdated social safety net.... read
Why Financial Pay Shouldn’t be Left to the Market	Lucian Bebchuk
Although some financial firms are reforming how – and how much – they pay their employees, governments around the world are seriously considering regulating such firms’ compensation structures, spurring loud protests from financial bosses. But, as the recent financial crisis showed, such regulation is both justified and necessary.... read

FEATURED COMMENTARY

Credit Default Swaps on Trial
Luigi Zingales
Series: The Rules Of The Game

Comments: 2
Recommended: 0
Read: 33722

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