Do we understand it? Forbidden questions on the financial crisis

First, the paper asks the question of how much monetary policy is responsible for the crisis and discusses the relationship between the risk-free interest rates monoeuvred by central banks and the size and sensitivity of the risk premia that are included in the spread-augmented market interest rates. Second, the opinion is discussed that the responsibility of the crisis has been an insufficient amount of financial regulation, in contrast with the idea that qualitatively inadequate rules have been a more important cause. Third, the quality of crisis management is discussed looking at lending of last resort, bailouts and deposit insurance. The paper concludes by looking at the issues discussed from the specific point of view of the European Union and its progresses towards financial re-regulation.