Financial Infrastructure and Public Policy: A Functional Perspective
Boston University - Department of Finance & Economics
Robert C. Merton
Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER); Harvard Business School - Finance Unit
This paper considers the changes in financial infrastructure and regulation necessary to support welfare-improving financial innovation. Topics discussed include the development of a system of risk accounting, the regulation of OTC derivatives, reform of deposit insurance, pension reform and privatization, and the use of financial technology in implementing macro-stabilization policies.
JEL Classification: G1, G38
Date posted: August 25, 1998