Discussion Paper
Swedbanks ¨Discussion Paper¨ tar upp ekonomiska frågeställningar och analyserar dem på djupet. Vanligen är publikationen på engelska.
2010 05 29
Financial Sector Post-Crisis Challenges
Abstract
This paper discusses factors that led to the financial crisis in 2008 and the lessons learnt. It argues that there were economic policy failures as well as market failures, and that behavioural finance aspects also have to be included in the analysis as financial crises seem to be hardy perennials. The paper also disusses the way forward for central banks, governments, financial actors, and academia. Apart from the most common solutions of increased capital and liquidity requirements, more reasonable compensations schemes, the too-big-to-fail issues, and the need to increase transparency on OTC derivative markets, there are other more sublime recommendations. These include the need to create sound values, to adopt a more holistic and long-term perspective in policymaking and business, and to improve our historic knowledge and understanding of the financial sector, in relation to products and psychology as well as in relation to the real economy.
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