As those who have been following the academic and policy debates know, there are significant, ongoing disagreements concerning the roles of various factors contributing to the rapid growth of the shadow banking system, the precise dynamics of the runs in 2007 and 2008, and the relative social utility of some elements of this system.
Lack of global financial regulation I highly welcome the general tone of the Pontifical Council’s note which stresses the need for the financial sector to serve the overall economy and, accordingly, the common good.