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 (95X 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 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 Global Trade Slowdown
Language: en
Pages: 44
Authors: Cristina Constantinescu
Categories: Business & Economics
Type: BOOK - Published: 2015-01-21 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

This paper focuses on the sluggish growth of world trade relative to income growth in recent years. The analysis uses an empirical strategy based on an error co
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
The Theory of Competitive Price
Language: en
Pages: 216
Authors: George Joseph Stigler
Categories: Competition
Type: BOOK - Published: 1946 - Publisher:

DOWNLOAD EBOOK