Stepping back and surveying the last half decade's worth of US policy responses to the global financial crisis,what we see before us looks very much like the "piecemeal" and "patchwork" pattern of reform that Hyman Minsky cautioned against in his 1986 book Stabilizing an Unstable Economy. If there ever was any real political space for fundamental reform of the financial system, it has since disappeared, even as the economic wounds left by the crisis continue to fester. The battle to shape the rule-making and implementation process of the 2010 Dodd-Frank Act is ongoing, but Dodd-Frank—indeed, the whole host of policy reactions (and nonreactions) since 2007—is largely undergirded by an approach to financial regulation that is incomplete and inadequate.
Read the rest at the Levy Institute
by Jan Kregel, director of the Levy Institute’s Monetary Policy and Financial Structure program and a professor at Tallinn Technical University, and Dimitri B. Papadimitriou, president of the Levy Institute and executive vice president and Jerome Levy Professor of Economics at Bard College
(h/t Michael Stevens at Multiplier Effect, It's hard to fix what you don't think is broken)