Abstract
Financial markets are ultimately a series of transactional decisions. It is not possible to regulate all of these directly. Ultimately, therefore, any regulatory response to the financial crisis must start with the decisionmaking process that forms the fabric of the markets. But how far is that recognised in the move towards greater public-sector prescription? To the extent it is not, are more effective mechanisms needed to ensure that the underlying assumptions are properly articulated, possible impacts identified and their merits assessed?
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