Financial Regulation in the European Union After the Crisis: A Minskian Approach

ISBN-13: 9781138668478 / Angielski / Twarda / 2018 / 174 str.

Domenica Tropeano

Opis

In the wake of the financial crisis, new regulatory measures were introduced which, along with changes in monetary and macroeconomic policy, have transformed the global financial structure. But this new financial structure displays various fragilities. A new shadow banking system has grown both inside and outside the traditional banks and the divergence between core and periphery countries' banks has increased further due to both the new regulations and the European Central Bank's very peculiar interventions. Following Minsky's approach, this book explores the interplay between monetary policy, regulation and institutions in the aftermath of the great financial crisis. Minsky's insights are used here to interpret the recent regulatory changes and consider how they have affected the evolution of banks and financial markets. The unfortunate conclusion is that the changes in financial regulation introduced in various jurisdictions and inspired by the work of the Basel Committee, have not succeeded in thwarting the instability of the economic system. Instead, the mix of policies implemented so far has brought about increased fragility in the financial system. Minksy's work on financial stability offers alternative solutions which policy-makers need to consider to resolve these issues.

O autorze

Domenica Tropeano is Associate Professor at the Department of Economics, Università di Macerata, Italy.