FRANKFURT – A systematic and broad failure of regulation is the elephant in the room when it comes to reforming today’s Western capitalism. Yes, much has been said about the unhealthy political-regulatory-financial dynamic that led to the global economy’s heart attack in 2008 (initiating what Carmen Reinhart and I call: The Second Great Contraction). But is the problem unique to the financial industry, or does it exemplify a deeper flaw in Western capitalism?
