Fair Value is the Wrong Scapegoat

This piece was published this week by Bruegel in its Policy Contributions series. I detail the arguments in the current policy debate about fair value accounting and again conclude that the problem lies with prudential regulations, such as Basel II, rather than accounting standards.

Download BruegelPolicyContribution_May08.pdf to read the paper. A French version is forthcoming in June in a joint issue of the Revue d'Economie Financière and Risques.