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Full-Text Articles in Law
The Road To Precautionary Review Of Financial Products, Hilary Allen
The Road To Precautionary Review Of Financial Products, Hilary Allen
Articles in Law Reviews & Other Academic Journals
Financial innovation introduces new and complex products into the financial system, providing market participants with more bespoke ways to manage their risk, return and liquidity. However, by increasing the complexity of the financial system, financial innovation also compromises financial stability. Faced with the rapid pace of financial innovation, regulators have two options. One is to seek to meet the complexity of the industry with complex regulation, in an arms race that under-resourced regulators are bound to lose. The less explored (and more controversial) path is for regulators to try to reduce the complexity of the financial system by limiting financial …
The Financial Stability Oversight Council (Fsoc): It's Not All About The Designation, Hilary Allen
The Financial Stability Oversight Council (Fsoc): It's Not All About The Designation, Hilary Allen
Articles in Law Reviews & Other Academic Journals
The recession that followed the financial crisis of 2007-2008 illustrated just how important financial stability is:when the financial system fails, it results in credit contractions that can cause seismic problems for the economyat large. Because financial institutions lack the incentives, information and tools to reduce the amount of risk inthe financial system as a whole, the vital task of overseeing and regulating for financial stability must necessarilybe carried out by a public body.
Putting The 'Financial Stability' In Financial Stability Oversight Council, Hilary Allen
Putting The 'Financial Stability' In Financial Stability Oversight Council, Hilary Allen
Articles in Law Reviews & Other Academic Journals
For all the ink that has been spilled on the topic of financial regulation since the financial crisis of 2007-2008, there has been little examination of the competing normative goals of financial regulation. Should the financial system be treated as an end in itself such that the efficiency of that system is the primary goal? Or should financial regulation instead treat the financial system as a means to the end of broader economic growth? This Article argues for the latter approach, and stakes out the controversial normative position that financial stability, rather than efficiency, should be the paramount focus of …