Posted by Morgan Ricks, Vanderbilt Law School, on Tuesday, March 15, 2016
Editor's Note:
Morgan Ricks is Associate Professor of Law at Vanderbilt Law School. This post is based on a book authored by Professor Ricks.
In my book, The Money Problem: Rethinking Financial Regulation, recently published by the University of Chicago Press, I offer a novel take on the “shadow banking” problem—arguably the central challenge for modern financial stability policy. I contend that financial instability is, and always has been, largely a problem of monetary system design. Structural monetary reform could pave the way for a dramatic reduction in the scope and complexity of modern financial stability regulation.