The issues in today's crisis – and indeed in the most important crises, historically – can best be understood as a manifestation of asymmetric information in an environment of rapid financial innovation. The present paper reviews the asymmetric information and financial innovation frameworks...

Financial innovation is inextricably tied to asymmetric information and therefore sets the stage for financial crises. Over history, every truly meaningful crisis has had elements of asymmetric information, particularly affecting innovative financial instruments that are primary market...

This paper seeks to review events leading up to the financial crisis of 2008, including the massive government intervention into the U.S. financial markets, and then asks some questions and makes some recommendations about changes in specific areas of business practice and public policy as they...