Securitization, Deregulation, Economic Stability, and Financial Crisis, Parts I and II

摘要

Research Associate eric Tymoigne analyzes the trends in the U.S. financial sector over the past 30 years and argues that unsupervised financial innovations and lenient government regulation are at the root of the current financial crisis and recession. He blames an economic setup that requires Ponzi processes for enduring economic expansion, and a regulatory system that is unwilling to recognize the intrinsic instability of market mechanisms. We need to change our approach to regulating financial institutions, says Tymoigne, and recognize the interests of the socioeconomic system (i.e., financial and systemic stability) rather than the interests of Wall Street or Main Street.