Systemic Regulatory Failures

The video discusses economic theories from the 1920s and 30s by Keynes, Hayek, and Knight, focusing on the lack of structural stability. It then explores global banking regulations, capital adequacy, and the role of the Bank for International Settlements. The video concludes with an analysis of regulatory models and their impact on banking practices, drawing analogies to safety inspections in the automotive industry.

Which economists are mentioned in the context of navigating uncertainty in the 20s and 30s?

• Keynes, Hayek, and Frank Knight

• Adam Smith and David Ricardo

• Milton Friedman and John Nash

• Karl Marx and Friedrich Engels

What is the global world appealing to the Bank for International Settlements for?

• Developing new economic theories

• Reducing global trade barriers

• Increasing investment in technology

• Creating large scale systems for assessing capital adequacy

What is the analogy used to describe the focus on structural models over examining credit extension?

• Building taller buildings instead of stronger foundations

• Growing larger crops instead of healthier soil

• Mandating thicker airbags instead of inspecting brakes

• Using faster cars instead of safer roads

What is the belief about having the right top-down model for regulation?

• It ensures economic growth

• It eliminates the need to worry about prudent credit extension

• It reduces the need for international cooperation

• It guarantees financial stability

Why is examining the prudence of credit extension compared to inspecting brakes?

• Both are time-consuming but essential for safety

• Both are unnecessary in modern systems

• Both are outdated practices

• Both are expensive and inefficient