Regulatory Response to the Financial Crisis

Charles A.E. Goodhart, Emeritus Professor of Banking and Finance, and long-standing member of the Financial Markets Group, at the London School of Economics, UK

• Contents: 1. Introduction 2. The Background to the 2007 Financial Crisis 3. Lessons from the Crisis for Financial Regulation: What We Need and What We Do Not Need 4. Central Banks’ Function to Maintain Financial Stability: An Uncompleted Task 5. A Less Hazardous Way to Protect Depositors – FT Article 6. The Regulatory Response to the Financial Crisis 7. Liquidity and Money Market Operations: A Proposal 8. Liquidity Risk Management 9. Now is Not the Time to Agonise Over Moral Hazard – FT Article 10. A Proposal for How to Avoid the Next Crash – FT Article with Avinash Persaud 11. A Party Pooper’s Guide to Financial Stability – FT Article with Avinash Persaud 12. The Boundary Problem in (Financial) Regulation 13. How, if at all, Should Credit Rating Agencies (CRAs) be Regulated? 14. Conclusions Index

'Goodhart's contribution. . . exhibits all the features which we have come to expect from him over the years: clarity, originality and an effort at all times to be constructive rather than destructive. It is the most thoughtful account and analysis of the crisis to have been published so far.'