Our article in The Guardian discusses how the digital revolution undermined the effectiveness of banking regulation. For this, we adopt a historical perspective. We conclude that today’s gradual approach in regulating the financial system is doomed to fail. The failure of capital requirements à la Basel I and II exemplify how the boundary problem of financial regulation has become insurmountable in the digital age. As we put it in the article:
“Restoring a functioning financial system in the digital age requires a fundamental overhaul of financial regulation. If regulators do not progress to the digital age, our financial system will remain in its current dysfunctional state.”
Find the full article here.