August 21, 2008

AEI's Robert Hahn and Peter Passell: "Tighter regulation of the financial markets is almost certainly in the cards. But reregulation could have unintended consequences, bolstering the power of well-organized interest groups, reducing access to capital, and undermining America's competitive position. It is easy to fall into bad regulation during crisis situations, and it is hard to dig out." New regulatory proposals, Hahn and Passell argue, should be evaluated on the basis of a range of maxims that include "Focus on Systemic Damage", "Beware Fighting the Last War", "Emphasize Transparency", and "Public Money Should Come With Strings Attached".