Lessons in financial regulation what we ve learned from the coronavirus recession

It’s time to start debating the lessons for financial regulation from the Coronavirus Recession. Sure, it’s early and we will learn more as the crisis unfolds, but these debates will take substantial time, so it is good to get started. Further, a clear-eyed review will help shape the continuing policy response.

Several of these lessons were actually clear before the crisis, but were not accepted by the regulatory community, either because they did not believe the arguments or because the necessary actions ran up against other policy goals.

This paper focuses on lessons learned from our experiences. Any redesign of the financial system will also need to focus on future issues, such as climate change and associated policy implications and the many issues that arise around the increased role of Big Data and machine learning.