The Imprudence of Macroprudential Policy
By Alexander William Salter
The financial crisis of 2008 has prompted some economists to call for government regulators to expand their reachby trying to minimize financial disruptions and systemic risks that might harm the broader economy. Their arguments, however, ignore two fundamental challenges for prudent regulation: the knowledge problem and the incentive problem.
|Other Independent Review articles by Alexander William Salter|
|Summer 2020||Ideologies, Institutions, and Interests:Why Economic Ideas Dont Compete on a Level Playing Field|
|Fall 2018||Space Capitalism:How Humans Will Colonize Planets, Moons, and Asteroids|
|Spring 2018||The Political Economy of Public Debt:Three Centuries of Theory and Evidence|
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