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Die Stabilität von Finanzmärkten:Wie kann die Wirtschaftspolitik Vertrauen schaffen?

Author

Listed:
  • Theurl Theresia

    (Universität Münster, Centrum für Angewandte Wirtschaftsforschung, Am Stadtgraben 9, D–48143 Münster)

  • Krahnen Jan Pieter

    (Johann Wolfgang Goethe Universität Frankfurt, Mertonstrasse 17–21, D-60054 Frankfurt (Main), Fachbereich Wirtschaftswissenschaften, Professur für Kreditwirtschaft und Finanzierung,sowie Center for Financial Studies, Mertonstrasse 17–21, D-60054 Frankfurt (Main))

  • Gehrig Thomas P.

    (Institut zur Erforschung der Wirtschaftlichen Entwicklung, Universität Freiburg, D–79085 Freiburg, Germany)

Abstract

From Theresia Theurl’s point of view financial markets exhibit certain features that turn them inherently unstable. Therefore, economic policy measures were necessary and advisable, but they should not take the shape of isolated and selected interventions. Rather, these measures of financial market supervision and regulation had to be integrated into a comprehensive concept of micro- and macroeconomic policy in order to allow the creation of stabilizing trust.In his contribution, Jan Pieter Krahnen maintains, that the systemic risk of banks and financial institutions has changed and risen in recent years. According to his view, this is due to a more widespread use of credit derivatives. Although they may cause a more efficient distribution of credit risk in the banking sector, at the same time they could mean a higher vulnerability of the banking sector to system-wide contagion effects of credit risk. As such, financial market supervision as well as the Basel II rules on Capital Standards should take into account not only the credit risk exposure of individual financial institutions, but also correlation measures of their share prices.For Thomas Gehrig, empirical anomalies demonstrate the relevance of awareness and trust in financial markets. This note would argue in favor of social policies that enhance public awareness in financial markets as a basis for trust. And so naturally, these policies need to be complemented by a strong financial order that aims at minimizing behavioral risks. He says, trust requires a regulatory framework that reduces manipulation by private as well as public interests. A competitive order complemented by strong regulatory oversight may go a long way towards generating liquid financial markets and the creation of trust. Trust by individuals, however, would be most strongly encouraged when individuals are entrusted in managing their own financial market activities including their own pension arrangements.

Suggested Citation

  • Theurl Theresia & Krahnen Jan Pieter & Gehrig Thomas P., 2006. "Die Stabilität von Finanzmärkten:Wie kann die Wirtschaftspolitik Vertrauen schaffen?," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 55(1), pages 45-69, April.
  • Handle: RePEc:lus:zwipol:v:55:y:2006:i:1:p:45-69:n:4
    DOI: 10.1515/zfwp-2006-0104
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    Cited by:

    1. Bernd Rudolph, 2008. "Lehren aus den Ursachen und dem Verlauf der internationalen Finanzkrise," Schmalenbach Journal of Business Research, Springer, vol. 60(7), pages 713-741, November.

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