Finance And Democracy: Towards A Sustainable Financial System

Description

This book is an extension of the author's last book (Crisis and Sustainability: The Delusion of Free Markets, Palgrave Macmillan, 2017) and sheds light on the evolution of the financial system after the 2007/08 crisis and on changes and developments in the regulatory framework that have taken place concurrently over the last ten years. The book’s central theme addresses the neoliberal philosophy of financial regulation and, in particular, the role of self-regulating markets in the finance sector and how this has affected incentives and behaviour within the finance sector. The author contends that neoliberal maxims have led us to believe that market-based finance is superior to, and safer than, a more rules-based regulatory regime for the sector, and then explains that experience suggests otherwise. The huge expansion of ‘financialization’ in the developed economies over the last two decades has greatly magnified the risks emanating from the impact of highly leveraged, risk averse, under-regulated finance on other sectors of these economies. The author concludes that financial institutions need to be encouraged to operate within a more socially responsible matrix that facilitates and promotes long-term economic growth coupled with social stability. Front Matter ....Pages i-xxiii Normative Foundations (Alessandro Vercelli)....Pages 1-27 Front Matter ....Pages 29-29 The Second Financialisation (Alessandro Vercelli)....Pages 31-60 The Emergence of Modern Financial Economics (Alessandro Vercelli)....Pages 61-91 Finance and Macroeconomics (Alessandro Vercelli)....Pages 93-116 Front Matter ....Pages 117-117 The Great Financial Crisis and Its Main Determinants (Alessandro Vercelli)....Pages 119-153 Responses to the Crisis: The Evolution of the Financial System and Its Regulation (Alessandro Vercelli)....Pages 155-204 Front Matter ....Pages 205-205 Proposals for a Radical Reform of the Financial System (Alessandro Vercelli)....Pages 207-240 Towards a Sustainable Financial System (Alessandro Vercelli)....Pages 241-272 Back Matter ....Pages 273-295