establishes an evolutionary mechanism for adapting regulatory structures to technological and regulation-induced innovation. Using …

as they attempt to reform their frameworks for financial regulation. These economies are striving to balance the quest … objectives can in fact reinforce one another. I also discuss aspects of macroeconomic policies and cross-border regulation that …

Regulation consists of rulemaking and enforcement. Economic theory offers two complementary rationales for regulating … arise in multi- party relationships and that regulation introduces opportunities to impose rules that enhance the welfare of … discretion and choose actions for the common good. Agency-cost theories portray regulation as a way to raise the quality of …

I characterize the optimal financial regulation policy in an economy where financial intermediaries trade capital … assets on behalf of households, but must retain an equity stake to align incentives. Financial regulation is necessary … prices force everyone to bear more risk. The socially optimal allocation can be implemented with a tax on asset holdings. I …

In the United States today, the system of financial regulation is complex and fragmented. Responsibility to regulate …

This paper sets forth a discussion framework for the information requirements of systemic financial regulation. It … enhance the detection and measurement of systemic risk …

previously considered in existing quantitative macro studies of housing finance: aggregate business cycle risk, and a realistic …, the boom in house prices is entirely the result of a decline in the housing risk premium. Third, low interest rates cannot …

superior. The intuition is simple: if underlying technologies are not convex, then risk-sharing can lower expected utility. The … likelihood of a bankruptcy cascade, "contagion," and systemic risk …

Over the course of the nineteenth century, the struggles of Paris Bourse to manage counterparty risk revealed the … regime that limited risk, trading began to migrate off the exchange to less regulated markets …