Financial policymaking in the context of the known, the unknown and the unknowable

Richard Herring ()
Additional contact information
Richard Herring: The Wharton School, Postal: 44 Steinberg-Dietrich Hall, , 3620 Locust Walk, , Philadelphia, PA 19104, http://www.wharton.upenn.edu/

Journal of Financial Perspectives, 2013, vol. 1, issue 3, 61-74

Abstract: This article examines the challenge of financial policymaking from the perspectives of what is known, unknown and unknowable about the financial system. It focuses on policy challenges during the Great Recession and changes in regulations in response to lessons drawn from the global financial crisis. The article concludes that since many of the risks to the financial system are unknown and some are unknowable, regulators and supervisors need to place much greater emphasis on the resilience of the system. Rather than imposing increasingly prescriptive regulations, a wiser course may be to devise simpler rules that can be implemented and monitored more easily.

Keywords: Financial policymaking; prescriptive regulations; financial regulations (search for similar items in EconPapers)
JEL-codes: G20 G38 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:jofipe:0037

Access Statistics for this article

Journal of Financial Perspectives is currently edited by Ms Alina Stefan

More articles in Journal of Financial Perspectives from EY Global FS Institute 1 More London Place, London SE1 2AF, UK.
Bibliographic data for series maintained by Ms Alina Stefan ( this e-mail address is bad, please contact ).