We Are Not Macroprudentialists
A Skeptical View of Prudential Regulation to Deal with Systemic Externalities
By Bogdan Glăvan, Flavia Anghel
The 2008 financial crisis is widely touted as supporting the case for more bank regulation and taxation to deal with systemic risk. This claim, however, often rests on dubious ideas about the effects of borrowing and the causes of herd behavior.
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