Responsibility and Accountability in the Financial Sector

Keynote Speaker: Professor Arthur Grimes, NZ-UK Link Foundation Visiting Professor at the School of Advanced Study, University of London

Micro-prudential settings and financial markets conduct regulations are important in controlling risk within any country – no matter how well or poorly performing its macroeconomy. In an environment of pervasive information asymmetries, an unfettered market can lead to socially sub-optimal risk-taking. Some restrictions on financial market participants’ activities and disclosure requirements are therefore required. However, adoption of policies that make the financial markets appear low risk, or even risk free, to uninformed participants can result in moral hazard that may produce even less stable outcomes than in a free market. Drawing on New Zealand’s relatively light-handed approach to financial market regulation, this lecture examines whether the GFC and other crises are caused not by too little regulation, but instead by too much.

Author: 
School of Advanced Study
Speaker(s): 
Professor Arthur Grimes, NZ-UK Link Foundation Visiting Professor at the School of Advanced Study, University of London
Organisations: 
Event date: 
Tuesday, 3 December 2013 - 12:00am
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