IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/21590.html

Financial Regulation: Where Do We Stand?

Author

Listed:
  • Goodhart, Charles
  • Lastra, Rosa

Abstract

This paper provides a critical approach to the current political and economic debate on the state of financial regulation. It discusses why setting capital regulatory requirements causes tensions between bank managers and shareholders on the one hand and taxpayers on the other, leading to a Minsky cycle. It also re-imagines the central bank’s Lender of Last Resort Role, with the aspiration that the central bank becomes again “Leader of Last Resort†. The paper also considers bank competitiveness and its interaction with regulation and takes into account the counter-regulation movement in the US.

Suggested Citation

  • Goodhart, Charles & Lastra, Rosa, 2026. "Financial Regulation: Where Do We Stand?," CEPR Discussion Papers 21590, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:21590
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP21590
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:21590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.