Reforming U.S. Financial Markets: Reflections Before and Beyond Dodd-Frank

by Randall S. Kroszner, Robert J. Shiller, Benjamin M. Friedman

Two top economists outline distinctive approaches to post-crisis financial reform. Over the last few years, the financial sector has experienced its worst crisis since the 1930s. The collapse of major firms, the decline in asset values, the interruption of credit flows, the loss of confidence in firms and credit market instruments, the intervention by governments and central all were extraordinary in scale and scope. In this book, leading economists Randall Kroszner and Robert Shiller discuss what the United States should do to prevent another such financial meltdown. Their discussion goes beyond the nuts and bolts of legislative and regulatory fixes to consider fundamental changes in our financial arrangements. Kroszner and Shiller offer two distinctive approaches to financial reform, with Kroszner providing a systematic analysis of regulatory gaps and Shiller addressing the broader concerns of democratizing and humanizing finance. After brief discussions by four commentators (Benjamin M. Friedman, George G. Kaufman, Robert C. Pozen, and Hal S. Scott), Kroszner and Shiller each offer a response to the other's proposals, creating a fruitful dialogue between two major figures in the field.

170 pages, Paperback

First published March 1, 2011

Reviews

[Stan]

This was good — short & sweet.

[Bill]

Shiller's article succinctly addresses some of the important areas that need reform, as well as raises several interesting ideas which can be explored and even implemented in the years ahead.