Survival of the fittest regulation
Trying prevent future financial crises by drafting new global regulations will do more harm than good, argues Marc Levinson in the latest edition of Foreign Affairs magazine.
In a closely argued article, Levinson champions diversity in regulation. The Senior Fellow for International Business at the Council on Foreign Relations warns: “If governments adopt the same regulations, they will make the same mistakes. Instead, financial regulation must be the task of individual governments and not multilateral committees.”
Levinson raises the spectre of regulatory monoculture, and champions a more Darwinian regulatory environment where good regulation succeeds and poor regulation falls by the wayside.