Financial Regulation

One of the many symptoms (or, in some views, causes) of a general slowdown of dynamism and growth in developed economies is the prevalence of lending to “zombie firms,” where [...]

Rent Check Croaking Cassandra's Michael Reddel misstates the causes of moral hazards in the banking system. The underlying guarantee of a government bailout plays a far larger role in determining [...]

In their chapter on financial regulation in The Captured Economy, Brink Lindsey and Steven Teles argue that the moral hazard in our financial system created through a series of formal [...]

Rent Check Daniel Tarullo on the history of financial regulation from the New Deal to Dodd-Frank. Research from the Chicago Fed finds the prevalence of non-traditional mortgages (e.g. those with [...]

One of the features of the financial system that makes it particularly tricky to regulate is financial innovation, where new securities or investments arrive on the scene (sometimes as a [...]

Writing in the Journal of Economic Perspectives, Daniel K. Tarullo offers a history of the changes made in financial regulation from the New Deal era to the post-crisis regulatory regime: [...]

Rent Check An IMF study analyzes what bank characteristics and investments contribute to idiosyncratic and systemic risk. Higher profitability creates "skin in the game" and thus an incentive to reduce [...]

A new paper from the International Monetary Fund analyzes the characteristics of a panel of over 400 international banks and finds what factors, beyond low levels of equity, influence a [...]

Rent Check Home values and young firm creation are strongly correlated, but when an increase in home values is driven by a bubble, the subsequent bust leads to a net [...]

Young firms (less than five years old), more so than small businesses, are important drivers of economic growth, particularly with respect to employing young people. Since many new businesses are, [...]