Implications of the Global Financial Crisis

Journal of the Economics and Business Educators NSW, 2014, Issue 2, pp. 26-34.

9 Pages Posted: 9 Nov 2014 Last revised: 14 Apr 2015

Wilson N. Sy

Investment Analytics

Date Written: August 26, 2014

Abstract

The global financial crisis has provided clear evidence that the global financial system, including that of Australia, is founded on flawed economic theories. There is no scientific justification for sophisticated risk management, complex institutional structures or intrusive regulation. Australian financial system reforms should simplify corporate structures by restoring Glass-Steagall type separation, discourage anti-competitive conglomeration, reduce system leverage and prohibit over-the-counter derivatives in regulated institutions, decrease secrecy of complex institutional regulation, and increase consumer protection through transparent disclosure of regulatory data.

Keywords: Crisis, regulation, risk, financialization

JEL Classification: G2, G28, G38, L13, L4, L51

Suggested Citation

Sy, Wilson N., Implications of the Global Financial Crisis (August 26, 2014). Journal of the Economics and Business Educators NSW, 2014, Issue 2, pp. 26-34.. Available at SSRN: https://ssrn.com/abstract=2520661 or http://dx.doi.org/10.2139/ssrn.2520661

Wilson N. Sy (Contact Author)

Investment Analytics ( email )

12 Gilchrist Place
Balmain East, NSW 2041
Australia
0424669802 (Phone)

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