10 October 2007

CITIZEN OF EUROPE: Between Scylla and Charybdis...

The first consequences of the financial crisis are clearly visible... The EU has plans of regulating financial markets more tightly, i.e. introducing more transparency, but also standardising and limiting the complexity of financial instruments...

Most of the readers would say that this is a definitely appropriate move... And I agree, but only to a certain extent.

As usually, there is something that some economic tiggers like the best...

I have no research on the topic at hand, but my intuition is that public choice theory may be relevant here - the number of lobbyists in Brussels is overwhelming and some of the new regulation may be detrimental to market players and the general population...

For me, public policy is always walking between Scylla and Charybdis. Scylla of market failure and Charybdis of government failure...

3 comments:

Thomas Shawn said...

Are they tightening and simplifying so as to model the United States or are they going beyond the US market?

remy piwowarski said...

i would say that it is unclear at the moment, but we will get back to the issue in the future...

btw - how did you get to know about our website??

Thomas Shawn said...

Been searching around for good economics blogs. Found this through a link somewhere.

I've started a business blog of my own after doing a religion/social commentary one for two years.

The best way to learn how to blog on a subject is to find good ones, read and make comments and then readers/commenters will follow you around.