Monday, April 21, 2014

The purpose of finance

I'm currently watching this video on regulating shadow banking. It is very interesting if you are into finance or acronyms. 

One of the panelists has a simple point yet it had never crossed my mind.  He argues the regulatory process begins in favor of the financiers; in order to regulate an innovation or instrument, the regulators must prove why it warrants regulation (think derivative markets).  He advocates for a reconceptualization of regulation where any innovation or instrument is proven to be socially beneficial before it is even allowed to exist.

Also: Jerry Epstein and Jim Crotty explore the social benefits of finance here.

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