Viral Acharya and Matthew Richardson on the dangers of new regulations inhibiting financial innovation:

Some say that this inhibits financial innovation. We think this gets the issue wrong.

The goal is not to have the most advanced financial system, but a financial system that is reasonably advanced but robust. That’s no different from what we seek in other areas of human activity. We don’t use the most advanced aircraft to move millions of people around the world. We use reasonably advanced aircrafts whose designs have proved to be reliable. The same is the case with ethical drugs. Although we are now in a golden age of biomedical research, our goal is to sell only products that have been tested extensively.