wRay and Tymoigne would need at least one more global depression to create such a system. - Google 検索

https://www.google.com/search?tbm=bks&q=wRay+and+Tymoigne+would+need+at+least+one+more+global+depression+to+create+such+a+system.

In addition to the lack of flexibility and an inappropriate regulatory and supervisory system, regulation and supervision may also promote instability if they promote self-regulation by financial institutions and if supervision and enforcement are minimal. This tendency may be more or less strong depending on the cultural background of a society and the relative power of financial institutions. For example, at the core of the culture of the United States is the idea that self-reliance and freedom of choice are to be promoted whenever possible, because individuals are mostly responsible for their own successes and failures. This idea was shaken during the Great Depression but a long period of economic stability progressively erased the memory of the past and a new generation was brought up within the cultural environment of U.S. society. Combined with economic stability and a systematic political organization to promote laissez-faire (Crockett 1995), the dismantling of the regulations put in place during the 1930s became a central theme of political life from the 1970s. Thus, a prolonged period of economic stability may lead to an increase in financial fragility because the regulatory body becomes more willing to relax “old” rules that prevent businesses from thriving and “deserving customers” from getting what they want. Combined with the socio-psychological aspects developed earlier, this cultural element may lead to a cycle between strong and weak regulation, or, if not weak regulation, at least weak supervision and enforcement by government. This tendency will be all the more strong if mega-financial institutions, with lobbying power and key positions in governments, can prevent the implementation of rules to curtail effectively the growth of financial fragility. Over a long period of stability, this change in the state of mind leads to deregulation, desupervision, and deenforcement of existing laws, which promotes moral hazard. Thus, it is not the existence of a government and a central bank acting as lender of last resort that is the source of moral hazard. It is the fact that the laws that were put in place to deal with moral hazard are not implemented or are removed. For example, the preamble of the Federal Reserve act stipulates that an “elastic” currency is created but also that strong banking supervision must be implemented. Black (2005, 2009) shows how the return of free-market ideas has led to complacency, leniency, and ignorance of existing laws, leading to massive frauds and moral hazard. At the same time, under the guise of the virtues of free markets, contemporary conservatives have used the government for their own purposes, leading to a decline in the effectiveness of government and, effectively, to crony capitalism (Galbraith 2008).

books.google.co.jp › books

· このページを訳す

Eric Tymoigne, ‎L. Randall Wray · 2013

次の書籍のコンテンツと一致: – 35 ページ

Minsky's half century from world war two to the great recession Eric Tymoigne, L. Randall Wray ... Notably, a regulatory system that is not flexible enough to account for new innovations and changes in behaviors may create competitive ...