It is beginning to look as though we may get serious about reforming systemic regulation. The Group of 20 leaders have met, Congress is holding hearings, and the think tanks are gearing up.

But the debate needs to get a little broader. So far the ideas have focused on agency scope, consolidation, and some piecemeal repairs to Basel II to deal with cyclicality, liquidity, and interest rates. The danger is that these fixes will add up to nothing but fighting the last war.

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