AS GOVERNMENTS struggle to prevent the global financial crisis turning into a deep worldwide recession, attention is also turning to the longer-term problem: how to avoid a similar crisis happening again. When politicians meet in Washington DC in December they are likely to agree that the “loose touch” approach to financial regulation of the past two decades will have to give way to tighter controls. But the global financial system now operates at a level of complexity no one has ever tried to tame. How do we re-engineer it so breakdowns don’t happen again?
One place to start is the…
