The Redistributive Effects of Financial Deregulation

The Redistributive Effects of Financial Deregulation
Author :
Publisher : International Monetary Fund
Total Pages : 42
Release :
ISBN-10 : 9781484307953
ISBN-13 : 148430795X
Rating : 4/5 (53 Downloads)

Book Synopsis The Redistributive Effects of Financial Deregulation by : Mr.Anton Korinek

Download or read book The Redistributive Effects of Financial Deregulation written by Mr.Anton Korinek and published by International Monetary Fund. This book was released on 2013-12-17 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial regulation is often framed as a question of economic efficiency. This paper, by contrast, puts the distributive implications of financial regulation center stage. We develop a model in which the financial sector benefits from risk-taking by earning greater expected returns. However, risktaking also increases the incidence of large losses that lead to credit crunches and impose negative externalities on the real economy. We describe a Pareto frontier along which different levels of risktaking map into different levels of welfare for the two parties. A regulator has to trade off efficiency in the financial sector, which is aided by deregulation, against efficiency in the real economy, which is aided by tighter regulation and a more stable supply of credit. We also show that financial innovation, asymmetric compensation schemes, concentration in the banking system, and bailout expectations enable or encourage greater risk-taking and allocate greater surplus to the financial sector at the expense of the rest of the economy.


The Redistributive Effects of Financial Deregulation Related Books

The Redistributive Effects of Financial Deregulation
Language: en
Pages: 42
Authors: Mr.Anton Korinek
Categories: Business & Economics
Type: BOOK - Published: 2013-12-17 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

Financial regulation is often framed as a question of economic efficiency. This paper, by contrast, puts the distributive implications of financial regulation c
The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy's Only Hope
Language: en
Pages: 289
Authors: John A. Allison
Categories: Business & Economics
Type: BOOK - Published: 2012-09-21 - Publisher: McGraw Hill Professional

DOWNLOAD EBOOK

The #1 Wall Street Journal Bestseller “Required reading. . . . Shows how our economic crisis was a failure, not of the free market, but of government.” —C
Regulatory Capitalism
Language: en
Pages: 261
Authors: John Braithwaite
Categories: Business & Economics
Type: BOOK - Published: 2008 - Publisher: Edward Elgar Publishing

DOWNLOAD EBOOK

In this sprawling and ambitious book John Braithwaite successfully manages to link the contemporary dynamics of macro political economy to the dynamics of citiz
Government Is Good
Language: en
Pages: 320
Authors: Douglas J. Amy
Categories: Democracy
Type: BOOK - Published: 2011 - Publisher: Dog Ear Publishing

DOWNLOAD EBOOK

Why a book defending government? Because for decades, right-wing forces in this country have engaged in a relentless and irresponsible campaign of vicious gover
The Wealth Effect
Language: en
Pages: 597
Authors: Jeffrey M. Chwieroth
Categories: Business & Economics
Type: BOOK - Published: 2019-03-21 - Publisher: Cambridge University Press

DOWNLOAD EBOOK

Shows how the politics of banking crises has been transformed by the growing 'great expectations' among middle class voters that governments should protect thei