We observe that financial regulation is ever-growing, with the latest area to experience increased supervisory attention being pensions. Yet this has not made the financial world or consumers safer, and for pensions in particular there are unexpected and undesired consequences. We explore the...

Bail-ins and creditor haircuts have long been a feature of resolutions and recapitalizations when banks have become, or are on the verge of becoming, “gone” concerns. The public outcry against taxpayer bailouts has led to the development of something new—the automatic bail-in of creditors...

This paper discusses a "pure" form of financial contagion, unrelated to economic fundamentals--investors' shifting appetite for risk. It provides an analytical framework for identifying changes in investors' risk appetite and discusses whether it is possible to directly measure them in a way...

Avinash Persaud argues that the proposed regulation of credit rating agencies will do more harm than good Copyright (c) 2009 The Author. Journal compilation (c) 2009 ippr.

This paper discusses a "pure" form of financial contagion, unrelated to economic fundamentals - investors' shifting appetite for risk. It provides an analytical framework for identifying changes in investors' risk appetite and discusses whether it is possible to directly measure them in a way...

The surviving legacy of the Long Term Capital debacle of October 1998 is an increased preference for liquidity among international investors. This process has a self-fulfilling element with liquidity following investors out of the less liquid markets and into the more liquid. A closer...

In the international financial arena, policy makers chant three things: market-sensitive risk-management, transparency and prudential standards. The message is we do not need a new world order, just to improve the workings of the existing one. While many believe this is an inadequate response to...