Reinventing Financial Regulation: A Blueprint for Overcoming Systemic Risk (in English)
Synopsis "Reinventing Financial Regulation: A Blueprint for Overcoming Systemic Risk (in English)"
What would a well-regulated financial system look like? Up until now, policymakers, financial experts, and leading academics the world over have been content to avoid offering concrete answers to this pressing question, preferring instead to advocate for worthy but lukewarm reforms that ultimately leave the global financial system exposed to the very same risks that so recently brought it to its knees. But the world economy literally cannot afford to dodge this question any longer—which is why, in Reinventing Financial Regulation , Avinash Persaud tackles it head-on.Refraining from incendiary, politically charged calls for patchwork reforms, Persaud instead dissects the topic as a scientist might, kicking off the discussion with an in-depth analysis of the flaws that have plagued most past and current attempts at financial regulation—and there are many. But the central problem with our financial reform efforts to date, Persaud finds, is that they have been about as effective as treating a cancer victim with a fistful of Band-Aids; when the entire system is compromised, you cannot simply slap a bandage on the next problem that presents itself and hope that you've cured the underlying disease.If we truly want to repair the financial industry and prevent future shocks, crashes, and busts, Persaud urges, we must take a step back and look at the financial industry as the highly interconnected ecosystem that it is, rather than allow our current view of it as an assortment of financial sectors and institutions that operate independently of one another to persist. And in Reinventing Financial Regulation , Persaud does just that. His unique perspective leads to some unique findings, and he finds that risk managing the financial system as a whole is a very different endeavor from risk managing the industry sector by sector. But most importantly, 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—and not just for today's financial climate, but once and for all.Combining Persaud's deep expertise in the academic, private sector, and public policy realms, 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 ultimately effective financial regulation system that could very well save the future of finance.
