This article analyses the nature and causes of the financial crisis of 2007--09 as well as the regulatory responses. There are two types of crises: banking crises, which affect the money stock and thus threaten the economy, and financial crises, which may destroy wealth but do not endanger the...

There are several generic problems connected with financial regulation. Among them, two perennial problems are associated with the existence of important, but porous, borders, or boundaries. The first such boundary is that between regulated and non-regulated (or less regulated) entities. The...

This article uses insights from organizational economics and financial regulation to study the optimal architecture of supervision. It suggests that the new architecture should revolve around the following principles: (i) banking, securities and insurance supervision should be further integrated;...