Financial Regulation: Ten Things You Need to Read

Financial Regulation: Ten Things You Need to Read2018-05-31T12:32:37-07:00

1. How a dysfunctional financial regulatory system perpetuates itself.

Anat R. Admati, “It Takes a Village to Maintain a Dangerous Financial System,” Stanford Graduate School of Business, May 31, 2016.

 

2. Seeing through rationalizations for the regulatory status quo.

Edmund L. Andrews, “Anat Admati: Mythbusting Four Popular Excuses for Failed Financial Regulations,” Stanford Graduate School of Business, August 14, 2017.

 

3. Proposal by the Minneapolis Fed to raise capital requirements in order to prevent future financial crises.

The Minneapolis Plan to End Too Big to Fail,” Federal Reserve Bank of Minneapolis, November 16, 2016.

 

4. Higher capital requirements would have significantly reduced the need for a public bailout in the 2007-8 financial crisis.

Fabrizio Perri and Georgios Stefanidis, “Capital Requirements and Bailouts,” Federal Reserve Bank of Minneapolis, August 2017.

 

5. To reduce the risk of bank runs, reduce banks’ reliance on short-term debt.

John H. Cochrane, “Toward a Run-Free Financial System,” from Across the Great Divide: New Perspectives on the Financial Crisis, November 1, 2014.

 

6. Overview of the financial sector’s rapid growth in recent decades.

Robin Greenwood and David Scharfstein, “The Growth of Finance,” Journal of Economic Perspectives, Spring 2013.

 

7. Financial sectors can be too big as well as too small.

Stephen G. Cechetti and Enisse Kharroubi, “Reassessing the Impact of Finance on Growth,” Bank for International Settlements, July 2012.

 

8. How a bloated financial sector can undermine efficiency and growth.

Stephen G. Cechetti and Enisse Kharroubi, “Why Does Financial Sector Growth Crowd out Real Economic Growth?” February 2015.

 

9. The enormous growth of the U.S. financial sector has apparently brought no improvement in the efficiency of financial intermediation.

Thomas Philippon, “Has the U.S. Finance Industry Become Less Efficient? On the Theory and Measurement of Financial Intermediation,” American Economic Review, April 2015.

 

10. Documents how compensation in finance has risen sharply relative to that in other sectors.

Thomas Philippon and Ariell Reshef, “Wages and Human Capital in the U.S. Finance Industry, 1909 -2006,” November 2012.