After the financial meltdown starting in 2008, calls for financial reform began. Dodd-Frank is the most obvious response to the need for better financial regulation. But does Dodd-Frank adequately fix things? Or might it also add additional layers of regulation making conducting business unnecessarily difficult and adding risk. (Related post from Sept 12)
A recent paper by Federal Financial Analytics develops the idea of "Complexity Risk". As the name suggests Dodd -Frank seems to add additional, confusing and sometimes contradictory rules.
Here's the paper: Complexity risk
And if you don't want to read the whole paper here is a column from Joe Nocera of the New York Times who comments Keep it simple
Worth reading.
A recent paper by Federal Financial Analytics develops the idea of "Complexity Risk". As the name suggests Dodd -Frank seems to add additional, confusing and sometimes contradictory rules.
Here's the paper: Complexity risk
And if you don't want to read the whole paper here is a column from Joe Nocera of the New York Times who comments Keep it simple
Worth reading.
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