Tag: financial regulation; volatility; default risk; market trends

  • Regulation Cannot Depend on Irrational Markets

    At this point, it is all too clear that financial markets can get things wrong. This is not an isolated phenomenon. No, getting it wrong tends to be the name of the game for financial markets. Understanding that financial markets regularly underestimate or overestimate the risks of investing is crucial to the proper design of financial market regulations.

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