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Financial crisis regulatory

You have been asked to write a ‘Briefing’ article for The Economist analysing the debate initiated by Robert
Shiller about democratising finance and comparing this with the kinds of regulatory measures that have been
adopted in the OECD countries in the wake of the recent financial crisis. consider the following in your
article:

? Are the measures that are currently being taken to regulate the financial system sufficient to avoid another
crisis of the kind that began in 2007?
? If not, should we opt for stronger regulation of the financial system such as limits on financial innovation and
the complexity of financial products and should we attempt to reduce the size and significance of finance in the
economy?
? Alternatively, should we follow the approach taken by Shiller in which the problem with finance is seen as a
lack of democracy rather than too much complexity?

 

 

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