The financial crisis of 2008 has prompted some economists to call for government regulators to expand their reach—by 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.

Alexander William Salter is a Research Fellow at the Independent Institute and Associate Professor of Economics in the Rawls College of Business at Texas Tech University.
Banking and FinanceBureaucracy and GovernmentEconomic PolicyEconomistsEconomyGovernment and PoliticsPhilosophy and ReligionPublic Choice
Other Independent Review articles by Alexander William Salter
Fall 2020 Malignant Monetary Monocentricity
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