Recent discussions of debt sustainability and fiscal consolidation have been motivated by the crisis: markets are impatient, and time is short. While not denying the need for immediate measures to address immediate problems, the 13th CEPR/ICMB Geneva Report on the World Economy, ‘Public Debts: Nuts, Bolts and Worries’, views the public debt situation [...]
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Posted on August 3rd, 2010
Endgames matter in financial regulation. Who is in charge and how losses are allocated strongly affects incentives and behavior long before difficulties arise. Most countries though lack an effective framework for resolving systemically important financial institutions (SIFIs). All too often—as in the recent crisis, the endgame is instead determined by frantic improvisations over [...]
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