Posted: 25 Aug 1998
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
Suggested Citation: Suggested Citation
Bodie, Zvi and Merton, Robert C., Financial Infrastructure and Public Policy: A Functional Perspective. Available at SSRN: https://ssrn.com/abstract=6639