Membre de l'Institu t d'Economie Industrielle (IDEI), Jean-Charles Rochet contribue à de nombreuses publications dans le domaine de la finance. Actuellement en congés de TSE, il enseigne la finance au département "Banking and Finance" de l'université de Zurich.
The Global Crisis has intensified debates over the merits of financial innovation and the optimal size of the financial sector. This column presents a model in which the growth of finance is driven by the development of a financial innovation. The model can help explain the securitised mortgage debacle that triggered the latest crisis, the tech bubble in the late 1990s, and junk bonds in the 1980s. A striking implication of the model is that regulation should be toughest when finance seems most robust and when innovations are waxing strongly.