The Broad Framework
Reading the evolution of financial structures and regulation in the recent period – the 1980s to 2010 – means focusing mostly on the financial turmoil of the last few years; this part of the book is largely devoted to interactions between markets and policy initiatives taking place since 2007. But the roots of the crisis go back a long way and, as in the previous two parts, a sketch of the broader policy framework is necessary. John Maynard Keynes famously said, at the conclusion of his General Theory, that “practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist”.1 It rather seems that, in the last 30 years or so, policy-makers have been the slaves, or simply captives, of live and kicking economists. They have often spurned the insights provided by financial history and established financial theories, feeling that these are irrelevant to the context of modern technology and institutions.
KeywordsRecent Period Current Crisis Legal Origin Broad Framework Rational Expectation Hypothesis
Unable to display preview. Download preview PDF.