Financial regulation built on sand: The myth of the riskometer

Models Endogenous risk Regulations

Much of today's financial regulation assumes that risk can be accurately measured so that financial engineers, like civil engineers, can design safe products with sophisticated maths informed by historical estimates. But, as the crisis has shown, the laws of finance react to financial engineers' creations, rendering risk calculations invalid. Regulators should rely on simpler methods.


Models and risk | Financial Regulation, Systemic Risk, Stability and AI

Blogs and appendices on artificial intelligence, financial crises, systemic risk, financial risk, models, regulations, financial policy, cryptocurrencies and related topics

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