Defining shadow banking is still a nightmare.
But at the recent shadow banking conference in London, FT Alphaville found one economic thinker who could illuminate what was really happening: INET economist Perry Mehrling. And his message, Alphaville's David Keohane writes, was, "be not afraid of shadow banking."
"Mehrling’s real point is that in order to regulate the SBS correctly there needs to be an understanding that it is a very significant source of credit and that we want to keep it, not kill it," Keohane says.
For more of this in-depth look at Mehrling's work:
Read more at FT alphaville