Law, Bubbles, and Financial Regulation

ISBN-13: 9780415779395 / Angielski / Twarda / 2013 / 544 str.

Erik F. Gerding

Opis

This book aims to unpack the complex economic relationships between law, asset price bubbles and financial regulation. The failure to understand these interactions has had severe consequences, as law has proven ill-equipped to prevent or mitigate financial crises caused by bubbles. Bubbles represent prolonged, but unsustainable booms in the price of assets, such as securities or real estate. They form due to herd behavior by investors and other economic feedback loops. These same feedback loops render financial regulations designed for normal market conditions ineffective or counterproductive. Unpacking the interactions of bubbles and law reveals common threads among the epidemic of financial fraud in the Enron era, the subprime crisis, and previous financial crises throughout the world. A systematic examination of these interactions points to reforms for making regulation more effective and markets more stable.

Spis treści

Introduction: The Regulatory Instability Hypothesis  Part 1: The Economics and Legal History of Bubbles  1. The Economics of Bubbles  2.  A Legal History of Bubbles  Part II: The Regulatory Instability Hypothesis  3. Boom, Bust, and the Regulatory Stimulus Cycle in Financial Markets  4. Epidemics of Fraud and Compliance Rot  5. Regulatory Arbitrage Frenzies and the Hydraulics of Investor Demand  6. Deregulation and Regulatory Arbitrage Spirals: a Dance for Two  7. Procyclical Regulation & Herd-Promoting Regulation  Part III: Fighting Bubbles, Feeding Bubbles  8. Anti-bubble Laws  9. Credit and Leverage: The Monetary Dimension of Financial Regulation  Part IV: The Panic of 2007-2008 as Master Class in Regulatory Instability: The Shadow Banking Bubble  10. The Shadow Banking System: a Thumbnail Sketch  11. '"Lawyers, Runs, and Money": The Rise and Collapse of Shadow Banking  Part V: Lessons and Solutions: 12. Conclusion: Adaptive Laws and Channeling Politics: Designing Robust Regulations and Institutions

O autorze

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