Goyal, Ashima - In: Macroeconomics and Finance in Emerging Market Economies 2 (2009) 1, pp. 173-183
The swing in favour of markets weakened regulation, created incentives for excessive risk-taking, and reduced … transparency and diversity. As a result, financial markets became more pro-cyclical. The right combination of regulation and …. Central Bank accommodation has been blamed for the crisis, but excessive leverage due to lax regulation was of a much greater …