The SquamLakeReport:Fifteeneconomistsinsearch of financialreform

The Squam LakeReport is avolumebyeconomistsforeconomists.Itoffersthefruitsof thelaborsof15topeconomistswhometatSquamLake,NewHampshire,todiscuss financialreform.Whilesomewhatdisjointed,andavoidingmanyimportantissues,the bookisnonethelessa tourduforce. Itsmanyrecommendationsderivefromtwobasic principles:thatreformersneedtothinksystemically,andthatthird-partycosts stemmingfromsystemicriskneedtobeinternalized.Anditsapproachisjustwhatyou wouldexpectfromagroupofacademiceconomists.Itasks(andanswers)questions like:Wheredidincentivesgowrong?Whatwerethesourcesofmarketfailure?How can webetterprotectsocietyagainstnegativeexternalities