At the WSJ blog, Michael Derby writes,
The way some schools are being held to account for student performance can corrupt how these institutions seek to achieve the standards, a new paper from the Federal Reserve Bank of New York warns.
In other news, the way banks are being held to risk-based capital standards can corrupt how banks seek to achieve the standards, according to a new paper from researchers at the department of education.
Pot! Kettle! Now I know why arbitrage got a bad name.
Respek!
This just in: Incentives matter
That last line was terrific. Maybe the answer to resuscitating “checks and balances” is to have all the departments and agencies constantly critiquing all the other ones. It’s not just State vs DoJ vs DoD anymore; everyone gets in on the circle-sniping party.