BoE paper emphasises uncertainty over risk to argue for simpler regulation
Financial stability paper argues for a ‘simpler, heuristic' approach to bank regulation
The crucial distinction between risk and uncertainty has received far too little attention from practitioners and could turn conventional wisdom about financial decision-making "upside down", with big implications for bank regulation, according to a financial stability paper released today by the Bank of England.
The paper, Taking uncertainty seriously: simplicity versus complexity in financial regulation, looks set to be the last one published under Andrew Haldane as head of the financial
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