45-923 Financial Regulation In the Digital Age

6 units, Carnegie Mellon University

Both the financial crisis 20082009 and COVID19 2020 as well as the digitalization of our financial markets e.g., the prevalence of big data, digital assets and electronic algorithms, products and platforms have focused enhanced attention to the role of regulation for our financial system and associated property rights and the broader economy. The course will address the foundations of regulation why regulate from various perspectives within the context of a market economy, highlighting the sources of market failure such as externalities, adverse selection, incentive conflicts, and natural monopoly and potential remedies such as taxes and fees, price regulation, disclosures, guarantees, and bans. The conflicting goals among regulators and why we have multiple regulators and their impact on the meaning of regulation will be considered along with regulatory competitionarbitrage.

Prerequisites: none listed

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