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Toward a supply-side theory of financial innovation

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  • Awrey, Dan
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    Abstract

    Innovation. The word is evocative of ideas, products and processes which have somehow made the world a better place. Prior to the global financial crisis, many viewed financial innovation as unequivocally falling into this category. Underpinning this view was a pervasive belief in the self-correcting nature of markets and their consequent optimality as mechanisms for allocating society’s resources. This belief exerted a profound influence on how we regulated financial markets and institutions.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0147596713000449
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Comparative Economics.

    Volume (Year): 41 (2013)
    Issue (Month): 2 ()
    Pages: 401-419

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    Handle: RePEc:eee:jcecon:v:41:y:2013:i:2:p:401-419

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    Web page: http://www.elsevier.com/locate/inca/622864

    Related research

    Keywords: Financial innovation; Modigliani and Miller; OTC derivatives; Securitization; Structured finance; Swaps; Collateral swaps; Synthetic exchange-traded funds; ETFs; Dodd-Frank Act;

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    References

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    Cited by:
    1. Pistor, Katharina, 2013. "Law in Finance," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 311-314.
    2. Pistor, Katharina, 2013. "A legal theory of finance," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 315-330.

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