Two Cheers for Placebo-Regulation

by Andreas Hoffmann and Sebastian Müller The financial crisis of 2007 eroded the public confidence in financial markets. Many people have come to believe that only the government can guarantee the stability of financial markets. Responding to increased public demand, politicians from across the political spectrum support additional "macroprudential regulation". However, little is known about … Continue reading Two Cheers for Placebo-Regulation