Regulatory Reform: Integrating Paradigms

What were the market and regulatory issues that led to the subprime crisis? How should prudential regulation be fixed? The answers depend on the interpretive lenses--or 'paradigms'--through which one sees finance. The agency paradigm, which has dominated recent regulatory policy and provid...

Full description

Bibliographic Details
Main Authors:	de la Torre, Augusto, Ize, Alain
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Financial Crises G010 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280
Online Access:	http://hdl.handle.net/10986/5587

id	okr-10986-5587
recordtype	oai_dc
spelling	okr-10986-55872021-04-23T14:02:23Z Regulatory Reform: Integrating Paradigms de la Torre, Augusto Ize, Alain Financial Crises G010 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 What were the market and regulatory issues that led to the subprime crisis? How should prudential regulation be fixed? The answers depend on the interpretive lenses--or 'paradigms'--through which one sees finance. The agency paradigm, which has dominated recent regulatory policy and provides the most popular interpretation of the crisis, seems to be influencing much of the emerging reform agenda. But collective welfare failures (particularly externalities) and collective cognition failures (particularly mood swings) were as important, if not more so, in driving the crisis. These three paradigms should therefore be integrated into a more balanced policy agenda. But doing so will be difficult because they often have inconsistent policy implications. 2012-03-30T07:33:33Z 2012-03-30T07:33:33Z 2010 Journal Article International Finance 13670271 http://hdl.handle.net/10986/5587 EN CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Financial Crises G010 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280
spellingShingle	Financial Crises G010 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 de la Torre, Augusto Ize, Alain Regulatory Reform: Integrating Paradigms
description	What were the market and regulatory issues that led to the subprime crisis? How should prudential regulation be fixed? The answers depend on the interpretive lenses--or 'paradigms'--through which one sees finance. The agency paradigm, which has dominated recent regulatory policy and provides the most popular interpretation of the crisis, seems to be influencing much of the emerging reform agenda. But collective welfare failures (particularly externalities) and collective cognition failures (particularly mood swings) were as important, if not more so, in driving the crisis. These three paradigms should therefore be integrated into a more balanced policy agenda. But doing so will be difficult because they often have inconsistent policy implications.
format	Journal Article
author	de la Torre, Augusto Ize, Alain
author_facet	de la Torre, Augusto Ize, Alain
author_sort	de la Torre, Augusto
title	Regulatory Reform: Integrating Paradigms
title_short	Regulatory Reform: Integrating Paradigms
title_full	Regulatory Reform: Integrating Paradigms
title_fullStr	Regulatory Reform: Integrating Paradigms
title_full_unstemmed	Regulatory Reform: Integrating Paradigms
title_sort	regulatory reform: integrating paradigms
publishDate	2012
url	http://hdl.handle.net/10986/5587
_version_	1764395588149837824

Regulatory Reform: Integrating Paradigms

Similar Items