In the Media: Patrick Van Horn Casts Doubt on Effectiveness of Capital Buffer Regulations, Wall Street Journal Reports

Honnold Gate at Scripps College.

The Wall Street Journal reported that capital buffer regulations may not be enough to stabilize banks in the long term, according to a paper co-authored by Assistant Professor of Economics Patrick van Horn. The paper, which examined banks’ behavior before the Depression and the Great Recession, argued that countercyclical capital buffers “may achieve their immediate goals of protecting core banks during crises but raises questions about whether they will contribute to overall financial stability.”

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