The Regulatory Responses to the Global Financial Crisis: Some Uncomfortable Questions
By Stijn Claessens, Laura E. Kodres. Social Science Research Network, 2014
158 citations recorded by the source corpus.
We identify current challenges for creating stable, yet efficient financial systems using lessons from recent and past crises. Reforms need to start from three tenets: adopting a system-wide perspective explicitly aimed at addressing market failures; understanding and incorporating into regulations agents’ incentives so as to align them better with societies’ goals; and acknowledging that risks of crises will always remain, in part due to (unknown) unknowns – be they tipping points, fault lines, or spillovers. Corresponding to these three tenets, specific areas for further reforms are identified. Policy makers need to resist, however, fine-tuning regulations: a “do not harm” approach is often preferable. And as risks will remain, crisis management needs to be made an integral part of system design, not relegated to improvisation after the fact.
Subfields: Finance
View Paper: https://www.semanticscholar.org/paper/7bd52df1787b54a61c188182deec3839db0f16ee
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Finance
Citations in the corpus
- The Financial Crisis of 2007–2009: Why Did It Happen and What Did We Learn? (2015, unknown): “Claessens and Kodres (2014) identify two additional “common causes” that seem to play a role in crises: financial innovation that creates new instruments whose returns rely on continued favorable economic conditions (e.g., Fostel and Geanakoplos 2012), and financial liberalization and deregulation.”
- Unpacking the Institutional Complexity in Adoption of CSR Practices in Multinational Enterprises (2016, unknown): “Second, many of these reforms, including the Dodd–Frank Wall Street and Consumer Protection Act of 2010, were introduced after the time of our study, and have been less far reaching than policy experts had hoped (Claessens and Kodres, 2014; V eron, 2012).”
- Resilience and robustness in policy design: a critical appraisal (2017, background): “External shocks, which typically include events such as natural disasters and economic crises, have received considerable attention in the existing literature (Birkland 1996; Comfort et al. 2001; Baker 2009; Pelling 2012; Claessens and Kodres 2014).”