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September 13, 2011


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Erik Gerding

Thank you for this response, Cristie. I am struck in reading this thoughtful post and your insightful and nuanced writings over the years how different you (and many other law professors) approach regulator incentives and problems like capture than do many economists. As one point of comparison, consider the work of George Kaufman on regulatory forbearance that lead to "prompt corrective action." It is not just different ways of defining the problem, but also very different models of what makes regulators tick.

As I noted in a later post, many economists have a similar attitude to Kaufman's earlier work about the failings of regulators in the current crisis and what is needed to address those failings. The need to make regulations more automatic has gained much traction in the economic community.

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