The enforcement of new regulations has traditionally been the governments' strategy to respond to episodes of financial stability. That was the case in, for example, the United States after the market crash that detonated the 1930s “Great Depression”, with the Glass-Steagall Act, which...

Extreme volatility and high uncertainty characterized European financial markets between 2010-2012. In addition to the "financial contagion" effects of the 2007-2009 Subprime Mortgages crisis, the European financial markets' turbulence was also related to a more fundamentally economic reality:...