Read my latest Oxford University Press blog post on the amendment of section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 2010.
Republicans and Democrats are arguing over how many regulations we should add—or remove—from the financial services industry. Before we think about altering the regulations, we should think about enforcing the ones we currently have. Ever since the sub-prime meltdown erupted during 2008, politicians on both sides of the aisle have taken aim at the rules … Read moreEnforce the regulations that we already have
Remember when “liberal” became the insult of choice among Republicans? Apparently, “Keynesian” has now taken on that status for Republican economists. Never mind that Keynesian is ill-defined (old Keynesian? new Keynesian? the Keynesian part of the neoclassical synthesis?)–making Keynesian a dirty word and applying it to those with whom you disagree has become the tactic … Read moreAlan Meltzer’s straw “Keynesian”
Writing in today’s Wall Street Journal, John Taylor argues that “…the best way to understand the problems confronting the American economy is to go back to the basic principles upon which the country was founded—economic freedom and political freedom.” Taylor’s argument is based on assertion, rather than fact. For example, he is a little vague … Read moreJohn Taylor does not understand the word “unprecedented”
I am devastated. Writing in the Financial Times today, Alan Greenspan, argues that the Dodd-Frank Wall Street Reform and Consumer Protection Act will have–indeed is already having–unintended consequences. He cites five specific cases. 1) Making credit ratings agencies legally liable for their opinions about risk made them unwilling to give Ford Motor Credit a rating … Read moreAlan Greenspan is disappointed in Dodd-Frank
Let’s hope. Just as there are recurring themes in literature—and flies in the wake of a garbage truck–there a few things that we can reliably count on in the wake of a financial crisis. In the immediate aftermath comes damage control. The central bank intervenes. The legislature and executive agree on emergency measures. Bankers keep … Read moreLearning from our mistakes