Theories of financial regulation -- History of financial regulation in Australia, United States, and United Kingdom -- Pre-GFC bank behaviour change and Basel accords -- The "smart" regulatory framework -- The "smart" regulatory features of Basel II and Basel III -- The value-at-risk methodology...

Among divergent approaches to understand the global financial crisis, Minsky's Financial Instability Hypothesis has gained increased attention. In part, the chapter draws upon Minsky's notion that the seeds of instability are sown when banks, households, and firms move from hedge to speculative...