Was the closure of Silicon Valley Bank in March a failure of regulation? Greg Feldberg, director of research at the Yale Program on Financial Stability, recently investigated what could have happened if tighter regulations had applied to SVB. He found that better rules could have made a difference.
Yale SOM’s Robert Shiller warns that the shifts in public psychology that can spark instability are not easily anticipated.
Nobel Laureate Robert J. Shiller says that an event on the magnitude of the 2008-2009 financial crisis has to have many causes, but he sees “the spirit of the times” as a driving force behind many of them. In a lecture at Yale SOM, he described how he sees this spirit acting in everything from Fed policy to the growth in casinos.