Law, Bubbles, And Financial Regulation Paperback

India

Erik F. Gerding

Financial regulation can fail when it is needed the most. The dynamics of asset price bubbles weaken financial regulation just as financial markets begin to overheat and the risk of crisis spikes. At the same time, the failure of financial regulations adds further fuel to a bubble. This book examines the interaction of bubbles and financial regulation. It explores the ways in which bubbles lead to the failure of financial regulation by outlining five dynamics, which it collectively labels the "Regulatory Instability Hypothesis." . The book concludes by outlining approaches to make financial regulation more resilient to these dynamics that undermine law.

1138674397

9781138674394

English

Taylor & Francis Ltd

09 May 2016

544

Erik F. Gerding is Associate Professor at the University of Colorado Law School

Erik Gerding is a rare academic who can write penetrating analysis in fluent prose. Law, Bubbles and Financial Regulation is a remarkable book, a page-turner with a legal bent about the economy and financial bubbles. Anyone with an interest in the past financial crisis, or perhaps stopping the next one, should read this book - Steven M. Davidoff, New York Times "Deal Professor," Professor of Law, The Ohio State University "Why do central bankers and regulators seem unable to control the cycles of investor greed and fear that give rise to bubbles and crises and allow the same mistakes to be made over and over again? In Law, Bubbles, and Financial Regulation Erik Gerding draws on his encyclopedic knowledge of history, economics and law to offer an answer. Anyone interested in the ever fascinating story of financial booms and busts should read this provocative and insightful book" - Liaquat Ahamed, winner of the the Pulitzer Prize in 2010 for Lords of Finance "Professor Gerding explains how bubbles contribute to the erosion of legal rules by regulators and market actors, and how such erosion in turn contributes to increased risk in the financial system. By exploring the multiple channels through which this erosion occurs, Gerding helps us to think about how to better structure the financial regulatory system to be more resilient going forward" - Michael Barr, Professor of Law at the University of Michigan and former Assistant Secretary for Financial Institutions at the U.S. Treasury Department