Introduction to special issue on human capital in financial regulation and supervision

Abstract

This special issue examines the global importance of human capital in financial regulation and supervision in the twentieth century. It does so through five national case studies, including China, Japan, Singapore, Spain, and Switzerland, as well as an examination of the International Monetary Fund. Many of the essays use prosopographic methodology to document and analyze the educational, social, professional, and demographic backgrounds of regulatory and supervisory personnel. By doing so, the studies reveal a consistent tension within national oversight agencies about which kinds of human capital, knowledge, and professional experience to prioritize. In most cases, lawyers predominated during the era of post-World War II financial control, while economists exerted more influence during the post-1970s era of financial liberalization. The essays also consider the question of whether and how the revolving door between the financial services industry and financial oversight institutions functioned, engaging with ongoing debates about industry capture and regulatory schooling. Finally, the studies point to the need for further analysis of how financial regulatory and supervisory institutions formed in relation to the available human capital before the mid-twentieth century, when financial professionalization and government administrative tools were less developed.