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European and Global Reform Requirements for Overcoming the Banking Crisis

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  • Paul J.J Welfens

    (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

Abstract

This paper takes a look at the national and international reforms taken in OECD countries after the Transatlantic Banking Crisis. Key elements of the international economic order are analyzed and proposals for reforms both at the national and international level are presented. Economics has come under serious pressure after the banking crisis, the traditional models are concerned too much with deviations from an exogenous long-run equilibrium - instead, more emphasis should be given to long-run growth analysis, including the implications of the golden rule. The G20 reform process taken in the first two years after the banking crisis is partly inadequate and several proposals are presented for the EU and the OECD countries and the G20 that could contribute to a stable and efficient global economic system: The SGP should be adjusted to include requirements for Eurozone countries to achieve a budget surplus in boom periods; moreover, a volatility tax on the rate of return on equity should be imposed on banks and other key financial actors as well as a two-stage financing of ratings.

Suggested Citation

  • Paul J.J Welfens, 2010. "European and Global Reform Requirements for Overcoming the Banking Crisis," EIIW Discussion paper disbei180, Universitätsbibliothek Wuppertal, University Library.
  • Handle: RePEc:bwu:eiiwdp:disbei180
    as

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    References listed on IDEAS

    as
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    5. Paul J. J. Welfens & Mathias Weske (ed.), 2007. "Digital Economic Dynamics," Springer Books, Springer, number 978-3-540-36030-8, June.
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    8. Yoon, Chang-Ho & Song, Young-Woong & Jun, Byoung Heon, 2005. "Efficient capacity pricing of the internet services," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 46(2), pages 149-158, December.
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    11. Field, Alexander J., 1984. "A New Interpretation of the Onset of the Great Depression," The Journal of Economic History, Cambridge University Press, vol. 44(2), pages 489-498, June.
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    13. Paul J.J. Welfens & John T. Addison (ed.), 2009. "Innovation, Employment and Growth Policy Issues in the EU and the US," Springer Books, Springer, number 978-3-642-00631-9, June.
    14. Paul J. J. Welfens, 2008. "Digital Integration, Growth and Rational Regulation," Springer Books, Springer, number 978-3-540-74595-2, June.
    15. Paul J.J. Welfens, 2011. "Innovations in Macroeconomics," Springer Books, Springer, number 978-3-642-11909-5, June.
    16. Paul J.J. Welfens & Franz Knipping & Suthiphand Chirathivat & Cillian Ryan (ed.), 2006. "Integration in Asia and Europe," Springer Books, Springer, number 978-3-540-28730-8, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banking crisis; Europe; Global;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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