A nonpartisan plan of action for fixing the global economy from
fifteen of the world's leading economists
In the fall of 2008, fifteen of the world's leading
economists--representing the broadest spectrum of economic
opinion--gathered at New Hampshire's Squam Lake. Their goal: the mapping
of a long-term plan for financial regulation reform.
The Squam Lake Report distills the wealth of insights from the ongoing
collaboration that began at these meetings and provides a revelatory,
unified, and coherent voice for fixing our troubled and damaged
financial markets. As an alternative to the patchwork solutions and
ideologically charged proposals that have dominated other discussions,
the Squam Lake group sets forth a clear nonpartisan plan of action to
transform the regulation of financial markets--not just for the current
climate--but for generations to come.
Arguing that there has been a conflict between financial institutions
and society, these diverse experts present sound and transparent
prescriptions to reduce this divide. They look at the critical holes in
the existing regulatory framework for handling complex financial
institutions, retirement savings, and credit default swaps. They offer
ideas for new financial instruments designed to recapitalize banks
without burdening taxpayers. To lower the risk that large banks will
fail, the authors call for higher capital requirements as well as a
systemic regulator who is part of the central bank. They collectively
analyze where the financial system has failed, and how these weak points
should be overhauled.
Combining an immense depth of academic, private sector, and public
policy experience, The Squam Lake Report contains urgent
recommendations that will positively influence everyone's financial
well-being--all who care about the world's economic health need to pay
attention.
