Summary

This paper looks at the roots of the current crisis through an analytical framework of bad bets, excessive leverage, domino effects, and 21st-century bank runs. It shows that broad policy areas - including housing policy, capital regulations for banks, industry structure and competition, autonomous financial innovation, and monetary policy - affected elements of this framework to varying, but important degrees. Ultimately, this special study seeks to draw meaningful lessons for policymakers by understanding the complex history, evolution, and integrated nature of financial regulations.

This paper can also be accessed here, via the Social Science Research Network.