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Regulation should be international (Carmen Reinhart and Kenneth Rogoff)

Carmen Reinhart and Kenneth Rogoff at FT:

The root problem of excessive leverage, and the political dynamics that produce it, are hardly new. In our study of more than 200 years of banking crises we find rapid leverage build-up and sharp asset price inflation are often harbingers of financial crisis that politicians discount or ignore. The G20 leaders were right to argue that containing leverage has to be a focus of any revamp of the global financial system. But they failed to recognise that any practical solution to the problem of domestic political interference will require stronger international agreements and regulation. These agreements are not only to help deal with large multinational banks and protect against cross-border regulatory arbitrage. An international regulator with teeth is needed to protect against national political interests that, left unchecked, will again push the global system to excessive leverage and risk.

 元々パラレル・バンキング・システムが、バーゼル合意の回避で拡大してきたことを考えると、言うは易く、行なうは難しい。彼らが言うように献金を含めた政治経済も関わってくる。しかし、現在、献金力も痛んでいるので、レバレッジについて正しい協定を結ぶのなら今しかない。

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