From liberal finance inconsistency to relevant systemic regulation : an institutionalist analysis
This article suggests an institutionalist analysis of monetary capitalism and points to the inconsistency of liberal regulation mechanisms. It leans on the characteristics of money in a capitalist economy, often ignored by the consensual wisdom but explicitly studied by institutionalist approaches as major concerns in economic evolution. The article then shows, in a Minskyian vein, the weaknesses and irrelevance of liberal financial structures with regard to the prerequisites of sustainable macroeconomic stability. The main implication is that macro-prudential regulatory reforms must be designed and implemented to tame speculative finance. Therefore, market-based self-regulation mechanisms must be replaced by public regulation processes that could be framed on two rules: preventive-constrained finance and preventive-binding funding.
|Date of creation:||09 Jun 2015|
|Publication status:|| Published in Colloque international Recherche & régulation "La théorie de la régulation à l'épreuve des crises", Jun 2015, Paris, France. 2015, |
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01166696|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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