Regulate and die? Reducing market diversity is just asking for trouble (Image: Lucas Jackson/Reuters)
“WHY did nobody notice it?” the Queen famously asked after the 2008 credit crunch.
A few years after this we were sitting in a London cafe pondering a similar question. In fact, we were discussing a basic paradox in economics and finance. All the major schools of economic thought have an underlying premise that, over the long term, the forces of supply and demand reach an equilibrium and converge around a relatively stable middle point. In a similar way, the concept of “fair price”, where the…
