RICHARD KATZ

To be sure, booms and busts will come and go. But their severity can vary dramatically based on the policies in place to prevent them. With stronger regulations, neither the housing and derivatives bubbles nor the eventual crash would have been so bad.

An economic version of mutual deterrence is preserving the uneasy status quo between China and Japan.

An economic version of mutual deterrence is preserving the uneasy status quo between China and Japan.

To be sure, booms and busts will come and go. But their severity can vary dramatically based on the policies in place to prevent them. With stronger regulations, neither the housing and derivatives bubbles nor the eventual crash would have been so bad.