Containing Systemic Risk: Are Regulatory Reform Proposals on the Right Track?

Progress is being made on the road to reforming prudential regulation. A number of important reports have already seen the light of day, a reform bill is before the U.S. Congress, and significant international coordination efforts are in motion under the G-20 process and the new Financial Stability Board.[1] While the debate remains heated, a […]

Back to Global Imbalances?

Abstract The 2008-2009 financial crisis has shaken the prevailing equilibrium of the global economy, with a collapse in capital flows and international trade. How will the post-crisis constellation of current account imbalances look? Will the world resume financing the US, and continue sustaining large external imbalances there? Contrary to what many expected, some forces unleashed […]