Very cool debate at the Economist:
JOSEPH E. STIGLITZ: The current crisis is caused, in part, by inadequate regulation. Unless we have an adequate regulatory system—regulations and a regulatory structure that ensures their implementation—we are bound to have another crisis.
MYRON S. SCHOLES: There is now a rising chorus among regulators, politicians and academics claiming that the freedom to innovate in the financial domain should be curtailed.
Me: Over the past 30 years, the United States has moved from an environment of
excessive regulation to excessive deregulation. This philosophical change was
taken to irrational extremes, and it lay at the heart of the current financial