What is Financial Regulation Trying to Achieve?

Riccardo de Caria

Università degli Studi di Torino

September 23, 2011

Hayek Society Journal, Vol. 9, 2011

The article deals with the goals at which legislators and administrative agencies aim when they regulate the financial markets.

After considering shortly the most commonly accepted goals of financial regulation, according to the mainstream opinion, both from an abstract and from a more practical point of view, the article relies then on some of Friedrich von Hayek's insights to question the legitimacy and efficacy of legislative intervention in the area of financial markets.

Contrasting the mainstream view with Hayek's alternative position, the article makes the case that the hayekian approach is more persuasive, provocatively concluding that the piles of regulation that try to discipline financial markets, more and more after the recent crisis, are very often irrelevant, and sometimes even a remedy worse than the evil.

Number of Pages in PDF File: 9

Keywords: financial regulation, Hayek, state intervention in the economy, financial crisis

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Date posted: January 30, 2012  

Suggested Citation

Caria, Riccardo de, What is Financial Regulation Trying to Achieve? (September 23, 2011). Hayek Society Journal, Vol. 9, 2011. Available at SSRN: https://ssrn.com/abstract=1994472

Contact Information

Riccardo De Caria (Contact Author)
Università degli Studi di Torino ( email )
Via Verdi, 8
Torino, TO 10124
HOME PAGE: http://unito.academia.edu/RiccardodeCaria
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