How to Avoid Financial Crises in the Future

Contributor(s): Professor Costas Markides | Lots of people did many stupid things for us to get into the current financial mess. Now, the government is stepping up efforts to impose stricter financial regulations to ensure that such things do not happen in future. Will more regulation work? If history is any guide, the answer is no. Over the last 100 years, we've had a financial crisis every 15-20 years. Every time one took place, the government would step in and impose more regulation - only for another crisis to occur 15-20 years later. Why is that? Costas Markides is the Robert P. Bauman Chair of Strategic Leadership at the London Business School.