Purpose and Operation of the Shadow Financial Regulatory Committee

Abstract

Many economists would like to put their ideas into action to affect public policy, and some even attempt to do so. This is not exceptionally difficult to do if one is an insider working for policy makers, for example, the government or regulatory agencies, a major corporation, trade association, or affected player. But it is more difficult if one is an outsider working as an independent without an automatic power base. The Shadow Financial Regulatory Committee (SFRC) is an example of an attempt by a group of outsiders to affect national public policy in the public interest. This introduction describes the committee, analyzes the conditions generally identified as prerequisites for success in this area, reviews the history and operation of the committee, and evaluates its success to date. The following chapters elaborate on the analyses underlying a number of the committee’s important policy statements and primary areas of concern.