The illusion of control

November 7, 2022

Global macroprudential and microprudential regulatory changes since 2008 have been designed to make a repeat of a systemic crisis much less likely. This column argues that one-size-fits-all regulation constrains market response to short-term fluctuations in measured risk. Without more diversity in regulation, this will increase the likelihood of systemic crises in future.

Published on VoxEU.org

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