Financial regulation is not a math problem that stays solved; a regulatory regime elicits responses from private firms who adapt to maximize returns within constraints by amending rules and finding practices within the letter but contrary to the spirit of the rules, placing any regime under continual assault so that over time its ability to prevent crises degrades.

causalpending

Speaker

Arnold Kling

Evidence Quote

over time the regime's ability to prevent crises degrades

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

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