- Full Description
Reinventing Financial Regulation is more than just an urgent call to fix our profoundly troubled and damaged financial markets; it is a blueprint for an effective financial regulation system that could very well save the future of finance.
What would a well-regulated financial system look like? Until now, policymakers, financial experts, and leading academics have been content to avoid offering concrete answers to this pressing question, preferring instead to advocate piece-meal reforms that ultimately leave the global financial system exposed to the kind of risks that so recently brought it to its knees. The world economy literally cannot afford to dodge this question any longer.
Reinventing Financial Regulation offers an analysis of the fundamental flaws that have plagued most attempts at financial regulation. Financial reform efforts to date—and there are many—have been incoherent. Author Avinash Persaud observes that when the entire system is compromised, you cannot simply slap bandages on each new wound hoping to have cured the underlying disease.
Persaud's goal to bring clarity and a powerful simplicity to the financial regulation process results in a systematic and apolitical framework for fixing the world's fractured financial industry and transforming the regulation of financial markets—not just for today's financial climate, but once and for all.
What youll learn
- Why past and current efforts at financial regulation are misguided, as well as why our financial protective measures so significantly failed us during the financial crisis
- Why it is imperative for us to regulate the financial industry differently than we regulate any other consumer-based industry
- The concrete steps that leading economies can take to deconstruct their current regulatory models and in their place implement financial reforms that will protect the world economy from shocks, crises, and busts
- Why you should ignore the financial experts who claim that financial crashes are random and start paying more attention to the role that systemic risk plays in major market downturns
- Why we must approach financial regulation differently in emerging markets than we do in leading economies, as well as what regulatory structures would best serve the unique needs of emerging market economies
Who this book is forReinventing Financial Regulation is of the utmost importance to the financial industry, regulators, central bankers, politicians, policymakers, economists, and anyone with a bank account. Although it will include descriptions and explanations of some more technical concepts, like systemic risk, it is written in a way to make the pressing topic of financial regulation accessible to anyone with an interest in the health of the world economy.
- Table of Contents
Table of Contents
- Why Do We Regulate Finance?
- What Causes Financial Crashes
- Why Taxpayers Need to Be on the Hook
- How Should We Regulate the Financial System?
- Putting the Idea to Test
- Protecting Consumers
- How Accounting, Credit, and Risk Standards Create Risk
- What to Do About Complex Financial Instruments
- Bankers' Pay
- Why Locking Them Up Will Not WorkIs
- Financial Transaction Taxes
- The Shape of Financial Regulation
- The Locus of International Financial Regulation
- Sending the herd off the cliff edge
- Banks put themselves at risk at Basel
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