September 2023 was the 25th anniversary of the collapse of Long-Term Capital Management (LTCM). In response to LTCM's troubles, the Federal Reserve orchestrated a multi-billion dollar rescue package by a consortium of banks and it cut the Federal funds rate target by 75 basis points within six weeks.
The hedge fund sector's contribution to systemic risk is substantially lower today than at the time of LTCM.
Financial market participants' expectation that the Fed will aggressively ease monetary policy in response to financial market dislocations is a substantial source of financial instability.
Constraints on the anti-competitive behavior of dominant firms in the digital economy can in principle be effectively implemented using the existing tools of competition policy and antitrust enforcement.
The effectiveness of existing antitrust regimes in constraining anti-competitive behavior is substantially limited by the inadequacy of the resources available to competition and regulatory agencies relative to the dominant firms of the digital economy.
Constraints on the anti-competitive behavior of dominant firms in the digital economy would be more effectively implemented than at present with ex-ante regulation such as Europe's Digital Markets Act and other forms of public utility regulation.
Details on Digital Markets Act here: https://digital-markets-act.ec.europa.eu/index_en
