1. Towards a Better Financial System
- Author:
- Anat R. Admati
- Publication Date:
- 01-2019
- Content Type:
- Policy Brief
- Institution:
- Economics for Inclusive Prosperity (EfIP)
- Abstract:
- The financial system is fragile and distorted because current rules fail to counter the distorted incentives by banking institutions to borrow excessively and to remain opaque. Better-designed rules to reduce the reliance on debt and ensure that institutions use significantly more equity would enable the financial system to serve society better. Revising counterproductive tax and bankruptcy codes that, together with the extensive safety net offered to the financial system currently encourage dangerous conduct, would also be beneficial.
- Topic:
- Economics, International Trade and Finance, Finance, Economic Policy, Economic Theory, and Macroeconomics
- Political Geography:
- United States