"For the past thirty years we have lost our awareness that fair and efficient regulation is as important to successful capitalism as free markets. 'New Perspectives on Regulation' tells us, practically, how to go forward, as we regain that awareness." -- George Akerlof, Nobel Laureate in Economics, 2001
"At last, we have a highly readable and engaging volume--admirably brief--on financial and market regulation...The Tobin Project's aptly titled "New Perspectives" uncorks the old wine of regulation to ferment a timely and provocative new vintage, replete with intriguing--even urgent--solutions. Best of all, its expert authors ponder anew the fundamental questions first raised in the 1930s: why do we need regulation of markets, where do we need it, and what do we expect of it." --Roger Lowenstein, Bestselling author of "When Genius Failed" and "Origins of the Crash"
From the Back Cover
New regulation shouldn't rely on old ideas.
Since the 1960s, influential research on government failure helped to drive the movement for deregulation and privatization. Yet even as the study of government failure was flourishing, some very different ideas were sprouting in the social sciences with profound implications for our understanding of human behavior and the role of government. Some of these ideas, particularly from the field of behavioral economics, have begun to nudge their way into discussions of regulatory purpose, design, and implementation. Yet even here, the process is far from complete; and many other exciting new lines of research--on everything from social cooperation to co-regulation--have hardly been incorporated at all. Now that many lawmakers and their constituents have apparently concluded that the earlier focus on government failure went too far, it is imperative that they be able to draw on the very latest academic work in thinking anew about the role of government. This, at root, is the purpose of this book: to make the newest and most important research accessible to a broad audience.