The Warwick Commission on International Financial Reform: In Praise of Unlevel Playing Fields
In a pathbreaking report on reforming the international financial system in the wake of the global crisis, an international commission makes five key recommendations that they believe will enhance financial stability.
The current international financial crisis asks us to rethink our answer to an important question: what are our financial systems for? The Warwick Commission on International Financial Reform provides an answer by bringing together a range of world-class economists, political scientists, and lawyers to explore how we can best enhance international financial stability through regulation that is sensitive to variations in what countries want from their financial systems.
The Commission has identified key reforms for a well-regulated financial system. Among these reforms is a stress on dealing with boom-bust cycles, introducing macro-prudential regulation, recognising the need for a better allocation of risks among financial institutions, dealing with issues of regulatory capture, and bolstering national rules with international coordination to promote international financial stability.
The Commission's report is now available to read here.