Fears of criminal activity have prompted many governments to restrict competition from offshore financial centers, but over-regulating OFC activity presents a serious risk of destabilizing the global financial system.

Fears of criminal activity have prompted many governments to restrict competition from offshore financial centers, but over-regulating OFC activity presents a serious risk of destabilizing the global financial system.

Is economics unduly flat? Perhaps, sometimes. But part of the power of economics comes from the parsimony of its approach to human nature. If and when we search for more complex approaches, we will need to understand the tradeoffs involved in choosing between that power and simplicity and the...