Europe’s imbalanced response to the financial crisis

The author writes that the oft-repeated claim that policy-makers in the G20 and the EU are doing too little on the regulatory front in response to the global financial crisis is misplaced. In their determination to be seen to be doing something, politicians and regulators may even end up doing too much. If there is a flaw in the response to date, it is that all the focus is falling on regulation – while the macroeconomic factors that contributed to the crisis are being treated as side-issues.