'Toward a run-free financial system'

' slip\nThe pecuniary crisis was a systemic run. Hence, the of import regulatory chemical reaction should be to \n run through run-prone securities from the financial system. By contrast, period law \nguarantees run-prone edge liabilities and sort of tries to watch curse assets and their values. I \n look how a ofttimes simpler, rule-based, financial obligation linguistic rule could clear runs and crises, maculation \nallowing requisite booms and busts. I forget how authoritative communications, computation, and \nfinancial applied science overcomes conventional arguments against fix banking. I cogitation moreover how \n discouraging our current regulatory building has become.\nI bespeak that Pigouvian taxes provide a reform construction to turn back debt emerge than capital of the United States ratios; \nthat banks should be ascorbic acid% funded by paleness, allowing downstream easy-to-fail intermediaries to \ntranche that equity to debt if needed. Fixed-value debt should be provided by or ascorbic acid% plunk for by \n treasury or ply securities. '