Second, regulators and supervisors should be aware that a desirable regulatory framework will continuously evolve, partly due to population ageing and the consequent structural changes in the economy and financial services. The current structure and regulatory framework will not last forever, and neither will sectoral classifications such as “banking,” “insurance,” and “securities”.
In these short remarks I will discuss why, in my view, economics sometimes failed to give us the necessary tools to address policy challenges during the recent crisis, and underline some paradigmatic changes, or rather extensions to what already exists, which would be welcome in order to build a stronger link between economic policy and economic thinking.