Matthew J. Slaughter

In the fall of 2008, fifteen of the world's leading economists--representing the broadest spectrum of economic opinion--gathered at New Hampshire's Squam Lake. Their goal: the mapping of a long-term plan for financial regulation reform. The Squam Lake Report distills the wealth of insights from the ongoing collaboration that began at these meetings and provides a revelatory, unified, and coherent voice for fixing our troubled and damaged financial markets. As an alternative to the patchwork solutions and ideologically charged proposals that have dominated other discussions, the Squam Lake group sets forth a clear nonpartisan plan of action to transform the regulation of financial markets--not just for the current climate--but for generations to come. Arguing that there has been a conflict between financial institutions and society, these diverse experts present sound and transparent prescriptions to reduce this divide. They look at the critical holes in the existing regulatory framework for handling complex financial institutions, retirement savings, and credit default swaps. They offer ideas for new financial instruments designed to recapitalize banks without burdening taxpayers. To lower the risk that large banks will fail, the authors call for higher capital requirements as well as a systemic regulator who is part of the central bank. They collectively analyze where the financial system has failed, and how these weak points should be overhauled. Combining an immense depth of academic, private sector, and public policy experience, The Squam Lake Report contains urgent recommendations that will positively influence everyone's financial well-being--all who care about the world's economic health need to pay attention.

After more than half a century in which the United States led international trade liberalization, the country has been in a long stalemate over trade policy. It has been losing ground as other nations enter into market-opening arrangements that disadvantage U. S.-based production. In an increasingly competitive global economy, the policies of the past no longer offer a road map for the future. U. S. Trade Policy assesses current U. S. trade policy and analyzes issues of trade policy authority, trade negotiations, investment rules, competition policy, regulatory barriers, exchange rates, and export controls. This report argues that closing the political divide on trade will require measures that respond to the American public's ambivalence and are more explicitly designed to maximize the economic benefits that come from trade openings by increasing exports and attracting job creating investment. It also offers recommendations for trade and investment policies the United States should adopt that will help to create jobs and raise incomes for more Americans while also advancing foreign policy interests.