Keynote & Chapman Dialogue Address: Ex Ante Versus Ex Post Approaches to Financial Regulation

@article{Schwarcz2011KeynoteC,
  title={Keynote \& Chapman Dialogue Address: Ex Ante Versus Ex Post Approaches to Financial Regulation},
  author={Steven Schwarcz},
  journal={Regulation of Financial Institutions eJournal},
  year={2011}
}
  • S. Schwarcz
  • Published 31 January 2011
  • Economics
  • Regulation of Financial Institutions eJournal
Ideal financial regulation would work ex ante, to prevent financial failures. Once a failure occurs, there may already be economic damage, and it may be difficult to stop the failure from spreading and becoming systemic. The reality, though, is that preventing financial failures should be only one role for regulators. Even an optimal prophylactic regulatory regime cannot anticipate and prevent every failure. This paper, which formed my Chapman Dialogue Address at Chapman University School of…