This piece introduces the distinction between financial regulatory reform and institutional reconstruction and argues that efforts in the US and other countries to reform the regulation of finance can and should serve as a first step towards institutional reconstruction. The financial crisis has revealed a series of problems that cannot be solved by mere regulation. They require innovations designed to reorganize the relation of finance to the real economy. To this end, we need a practice of legal and economic analysis attentive to institutional realities and possibilities. This piece exemplifies such a practice in the setting of US financial reform.
The Journal of Globalization and Development (JGD) publishes academic research and policy analysis on globalization, development and the complex interactions between them. It is dedicated to stimulating a dialogue between theoretical advances and rigorous empirical studies to push forward the frontiers of development analysis and seeks to combine academic insights with the in-depth knowledge of practitioners to address important policy issues.