Holistic Regulation

“We must have a strategy that regulates the financial system as a whole, in a holistic way, not just its individual components.” Ben S. Bernanke, “Financial Reform to Address Systemic Risk” at the Council on Foreign Relations, Washington, D.C., March 10, 2009   In a 2010 short paper, Brunnermeier, Hansen, Kashyap, Krishnamurthy and Lo (2010)…

Markets in Everything: Bin Laden edition

Here’s how the killing of Osama Bin Laden may affect: Stock markets. Share prices rise. Commodity markets. Oil prices fall. Election markets.  Obama to get re-elected? Artists’ First Response.  A Bin Laden folk song? Healthcare Economist’s Receipt of Spam.  I’ve received an above average number of  unsolicited emails today regarding how Bin Laden’s death will affect…