IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789813223400_0002.html
   My bibliography  Save this book chapter

Income Inequality: The Battlefield Casualty of Post-crisis Financial Policy

In: Achieving Financial Stability Challenges to Prudential Regulation

Author

Listed:
  • Karen Shaw Petrou

Abstract

After such a busy day with so many fine presentations, you may think it a bit apocalyptic to start this dinner speech with thoughts about Napoleon’s invasion of Russia in 1812. No worry, I have not brought in cannons or Tchaikovsky’s “1812 Overture” to accompany my remarks. But I will start with a quote from Tolstoy’s War and Peace which resonated with me as I was thinking about my theme tonight: The urgent need to act on increasingly clear flaws in the new financial-market structure as economies struggle to recover and political systems show stark signs of popular despair. If we aren’t safer even as globalization breaks down and income inequality widens, then we have a recipe if not for Napoleonic-style invasion, then at least for still more populist marches on the capitals of the US, UK, France, the Netherlands, and many other nations. Profound political discontent without robust growth is a dangerous combination and it’s due at least in part to the post-crisis financial framework. Actions necessary to forestall still worse damage from the 2008 crash are eight-plus years on redesigning financial markets in ways that damage the ability of lower-income people to lift themselves up. Eight-plus years on, rules designed to make finance safer are instead redesigning markets in ways that undermine credit delivery, deposit-taking, and short-term liquidity. We all wish this weren’t so, but it is. This evening, I’d like to explain why I think the current situation is so dangerous and lay out action steps to financial policies that again meet their prime objective: making nations more prosperous so we all can live more peaceably…

Suggested Citation

  • Karen Shaw Petrou, 2017. "Income Inequality: The Battlefield Casualty of Post-crisis Financial Policy," World Scientific Book Chapters, in: Douglas D Evanoff & George G Kaufman & Agnese Leonello & Simone Manganelli (ed.), Achieving Financial Stability Challenges to Prudential Regulation, chapter 2, pages 13-24, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789813223400_0002
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789813223400_0002
    Download Restriction: Ebook Access is available upon purchase.

    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789813223400_0002
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Money and Banking; International Banking; Financial Instititions; Banks; Regulations; Compliance; Financial Crisis; Great Financial Crisis 2008; Microprudential; Macroprudential; Financial Stability;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789813223400_0002. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.