Macroprudential versus monetary blueprints for financial reform

Nathan Coombs
2016 Journal of Cultural Economy  
New books by Avinash Persaud and Morgan Ricks present very different blueprints for financial reform. Persaud builds upon the macroprudential programme to advocate a role for regulators in shepherding risk throughout the financial system. Ricks rejects the direction taken by postfinancial crisis regulation, offering a blueprint that addresses the panicprone nature of money creation in shadow banking. This review article provides a reading of their books which demonstrates how their evaluations
more » ... f the global financial crisis shape their policy prescriptions. It also suggests that although their blueprints are valuable thoughtexperiments they have a number of lacunae which economic sociologists and political economists can help fill. In particular, I argue that questions concerning regulatory epistemology, the politics of regulatory reform, and simplicity versus complexity in regulatory rule-making might orient a productive empirical and conceptual research agenda. ARTICLE HISTORY
doi:10.1080/17530350.2016.1234404 fatcat:xqb3ibgsffdinglufgt4tesqoq