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An Assessment of Financial Reform in OECD Countries

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Author Info
Malcolm Edey
Ketil Hviding
Abstract

This paper reviews the experience with financial reform in OECD countries. A general overview of the course of deregulation is provided and the economic rationale for financial regulation is discussed. The question of whether financial liberalisation has led to improved welfare is then addressed. It is argued that the benefits of improved allocation of resources and increased efficiency have to be weighed against the possible effects of deregulation on financial stability. While there is no strong evidence of any trend increase in financial volatility in key markets, there have been a number of episodes of instability apparently linked to financial deregulation. However, the analysis of individual crises suggests that inappropriate macroeconomic policies, deficiencies in prudential policies, and microeconomic distortions affecting incentives in the financial sector, were important contributing factors to the financial problems that have been experienced ...


Cet article passe en revue les expériences de réforme financière dans les pays de l’OCDE . Un survol général de l’évolution de la déréglementation est suivi d’un débat sur la logique économique de la réglementation financière. Puis la question de savoir si la libéralisation financière à conduit une plus grande bien-être est discutée. Le rapport conclut que les avantages d’une meilleure allocation des ressources et une augmentation de l’efficacité dans le secteur financier doivent être mis en balance avec les éventuels effets de la déréglementation sur la stabilité financière. Bien qu’il n’existe pas de signe manifeste d’un renforcement tendanciel de la volatilité dans les principaux marchés financiers, un certain nombre de périodes de turbulence semble avoir été lié au processus de déréglementation. L’analyse des crises individuelles suggère que des politique macro-économique inadequates, un système prudentiel déficient et des distorsions micro-économiques ont contribué d’une ...

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File URL: http://dx.doi.org/10.1787/515737261523
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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 154.

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Date of creation: 1995
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Handle: RePEc:oec:ecoaaa:154-en

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  1. Chiho Kim, 1997. "Monetary policy in a changing financial environment: searching for an efficient monetary policy framework in Korea," Pacific Basin Working Paper Series 97-05, Federal Reserve Bank of San Francisco. [Downloadable!]
  2. Panapoulou, Maria, 2002. "Technological and Structural Change in the European Banking Industry," EIFC - Technology and Finance Working Papers 13, United Nations University, Institute for New Technologies. [Downloadable!]
  3. Ari Hyytinen & Iikka Kuosa & Tuomas Takalo, 2003. "Law or Finance: Evidence from Finland," European Journal of Law and Economics, Springer, vol. 16(1), pages 59-89, July. [Downloadable!] (restricted)
    Other versions:
  4. Thorsten H. Block, 1998. "Financial Market Liberalization and the Changing Character of Corporate Governance," SCEPA Working Papers 1998-08, Schwartz Center for Economic Policy Analysis (SCEPA), The New School. [Downloadable!]
  5. Pesola, Jarmo, 2001. "The role of macroeconomic shocks in banking crises," Research Discussion Papers 6/2001, Bank of Finland. [Downloadable!]
  6. Luci Ellis & Dan Andrews, 2001. "City Sizes, Housing Costs, and Wealth," RBA Research Discussion Papers rdp2001-08, Reserve Bank of Australia. [Downloadable!]
  7. Ari Hyytinen & Ilkka Kuosa & Tuomas Takalo, 2001. "Law or Finance: Evidence from Finland (Revised version 25.09.2002))," Discussion Papers 775, The Research Institute of the Finnish Economy. [Downloadable!]
  8. David Felix, 2003. "The Past as Future? The Contribution of Financial Globalization to the Current Crisis of Neo-Liberalism as a Development Strategy," Working Papers wp69, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
  9. Jack Mintz, 1995. "Corporation tax: a survey," Fiscal Studies, Institute for Fiscal Studies, vol. 16(4), pages 23-68, November. [Downloadable!]
  10. Nathalie Girouard & Sveinbjörn Blöndal, 2001. "House Prices and Economic Activity," OECD Economics Department Working Papers 279, OECD, Economics Department. [Downloadable!]
  11. Laura Berger-Thomson & Luci Ellis, 2004. "Housing Construction Cycles and Interest Rates," RBA Research Discussion Papers rdp2004-08, Reserve Bank of Australia. [Downloadable!]
  12. Ari Hyytinen & Mika Pajarinen, 2001. "Financial Systems and Venture Capital in Nordic Countries: A comparative Study," Discussion Papers 774, The Research Institute of the Finnish Economy. [Downloadable!]
  13. Jack M. Mintz, 2000. "Taxation of Investment and Finance in an International Setting: Implications for Tax Competition," CoFE Discussion Paper 00-33, Center of Finance and Econometrics, University of Konstanz. [Downloadable!]
  14. David Felix, 2003. "The Past as Future? The Contribution of Financial Globalization to the Current Crisis of Neo-Liberalism as a Development Strategy," Development and Comp Systems 0310002, EconWPA. [Downloadable!]
  15. Werner Hölzl, 2003. "Convergence of financial systems: Towards an evolutionary perspective," Working Papers geewp31, Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
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  16. Malcolm Edey & Brian Gray, 1996. "The Evolving Structure of the Australian Financial System," RBA Research Discussion Papers rdp9605, Reserve Bank of Australia. [Downloadable!]
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