Now it’s not just liberal economists like Joseph Stiglitz and Thomas Freidman saying that reforms passed in response to the Great Recession were not enough to prevent another big crisis. David Miller, chief investment officer for Treasury’s Office of Financial Stability, says that even with the reforms in place, another crisis is inevitable.
“It is folly to believe that the next crisis can be avoided, any more than future recessions can be eliminated,” said in prepared remarks at Columbia University on Friday.
The best the reforms can do is help reduce the depth and duration of a future downturn, Miller said. He defended legislation including the Dodd-Frank reform act, which he said gives regulators more flexibility in responding to crisis.
“Regulators should not be faced with having no option but to keep banks alive and Dodd-Frank creates a framework for this,” Miller said.
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