IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

If the Financial System Is Complex, How Can We Regulate It?

Listed author(s):
  • Edoardo Gaffeo
  • Roberto Tamborini

The great financial crisis that erupted in 2007 has shaken not only the world economy but also the so-called mainstream of economics. As a major corollary, the issue of how financial markets are or should be regulated is in the eye of the storm. In this article, we discuss a new approach to economic analysis that is gradually emerging from the current debate, that of complexity, which is gaining ground especially in finance, particularly in the field of network analysis. We discuss the relationship between economic complexity and economic policy from the perspective of the search for new regulatory tools of financial systems. Our main point is that the complexity approach to financial markets by way of network analysis may represent a major stride in our understanding of these systems but also that we should be aware that this approach poses formidable challenges to policy design.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by M.E. Sharpe, Inc. in its journal International Journal of Political Economy.

Volume (Year): 40 (2011)
Issue (Month): 2 (July)
Pages: 79-97

in new window

Handle: RePEc:mes:ijpoec:v:40:y:2011:i:2:p:79-97
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mes:ijpoec:v:40:y:2011:i:2:p:79-97. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.