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
Date Written: August 26, 2014
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: Suggested Citation