The sub-prime mortgage crisis that triggered today's global economic crisis resembles a classic crime scenario in which means, motive, and opportunity all combine to make the crime possible: loose monetary policy and its offspring, excessive credit expansion, provided the means; perverse incentives coupled with insatiable greed provided the motive; and regulatory failure provided the opportunity. Monetary policy should gradually tighten as the current credit crunch eases. Acute risk aversion should temper institutional and personal temptations to believe in low-risk, high-return propositions. But what of government regulation to mitigate market failures? As large financial institutions recover relatively quickly, belief in the efficacy of self-regulation is re-emerging with equal swiftness. This seminar will explore the alternative post-crisis national and global financial sector regulatory schemes now being debated, evaluate their potential efficacy, and speculate on the prognosis for their enactment.
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Jay Rosengard, Lecturer in Public Policy, Harvard Kennedy School
- Monday, 15 March 2010
- 12.15 p.m. - 1.30 p.m.
Seminar Room 3-5
Level 3, Manasseh Meyer
Lee Kuan Yew School of Public Policy
469C Bukit Timah Road