I think we can solve the issue of time-inconsistent preferences by simultaneously considering the spatial dimension of decision making: if decisions of common interest are taken at national level, rigid rules that leave no room for interpretation are needed to create a level playing field. If decisions are taken at supranational level, more flexible regulation is possible without creating distortions.
Drawing on this information and other analysis, each quarter Federal Reserve Board staff systematically assess a standard set of financial vulnerabilities, including asset valuations and risk appetite, leverage, maturity and risk transformation, and interconnectedness in the broad financial system, and borrowing by households and businesses.