Neoliberalism can (and should) be saved by macroprudential financial regulation

Terrence Casey argues that macroprudential regulation, by smoothening the credit cycle, can temper the major problems with the neoliberal growth model. It is the tendency toward excessive credit growth, producing booms and subsequent damaging busts, and not productive exhaustions that weakens neoliberalism. If financial volatility can be removed, it is indeed a model worth saving as it has undoubtedly produced real growth, albeit in a two steps forward, one step back process.