Law Commons^™

Putting The 'Financial Stability' In Financial Stability Oversight Council, Hilary Allen

Articles in Law Reviews & Other Academic Journals

For all the ink that has been spilled on the topic of financial regulation since the financial crisis of 2007-2008, there has been little examination of the competing normative goals of financial regulation. Should the financial system be treated as an end in itself such that the efficiency of that system is the primary goal? Or should financial regulation instead treat the financial system as a means to the end of broader economic growth? This Article argues for the latter approach, and stakes out the controversial normative position that financial stability, rather than efficiency, should be the paramount focus of …

What Is 'Financial Stability' -The Need For Some Common Language In International Financial Regulation, Hilary Allen

Articles in Law Reviews & Other Academic Journals

Post-Crisis international financial regulation is animated by the buzzwords 'financial stability, " but surprisingly little attention has been paid to what these buzzwords actually mean. This Article argues that there are many-largely unexplored- disagreements regarding the meaning of 'financial stability, " and that this lack of consensus has the potential to cause a host of problems. Chief amongst these is that disagreement about the meaning of "financial stability" can thwart harmonized national implementation of international financial stability regulation. To draw attention to this largely-ignored definitional problem, and to start the process of addressing it, this Article proposes a working definition …

Is Financial Instability A Tax Problem With A Tax Solution?, Hilary Allen

Articles in Law Reviews & Other Academic Journals

Financial regulation and taxation are two fields of law that are notoriously complex and specialized. Given thiscircumstance, it is perhaps not surprising that financial regulators often pay little attention to tax, and focusinstead on their own sphere of influence. Unfortunately, financial regulators ignore tax incentives at the peril offinancial stability.

Financial Crisis Containment, Anna Gelpern

Articles in Law Reviews & Other Academic Journals

This Article maps financial crisis containment - extraordinary measures to stop the spread of financial distress - as a category of legal and policy choice. I make three claims.

First, containment is distinct from financial regulation, crisis prevention and resolution. Containment is brief; it targets the immediate term. It involves claims of emergency, rule-breaking, time inconsistency and moral hazard. In contrast, regulation, prevention and resolution seek to establish sound incentives for the long term. Second, containment decisions deviate from non-crisis norms in predictable ways, and are consistent across diverse countries and crises. Containment invariably entails three kinds of choices: choices …