A revolution is required in the financial regulatory framework in order that better incentives can be given to policymakers. The biggest problem of the present system is the time inconsistency so that authorities tend to support the market when the crisis strikes although they were planning to encourage responsible financial behavior through a no-bail-out policy. Moreover selfish incentives of financial supervisors also hinder the efficient control of the banking sector. To solve the problems it’s suggested to raise rewards and reputation of the public sector and set up supranational institutions for financial regulation.
Cao Xi
1 opmerking:
A revolution is required in the financial regulatory framework in order that better incentives can be given to policymakers in order for better incentives to be given to . The biggest problem of the present system is the time inconsistency so that authorities tend to support the market when the crisis strikes although they were planning to encourage responsible financial behavior through a no-bail-out policy. Moreover selfish incentives of financial supervisors also hinder the efficient control of the banking sector. To solve the problems it’s suggested to raise rewards and reputation of the public sector and set up supranational institutions for financial regulation.
No real flow in this text. Not coherent.
Do you have any idea who the wonman in the picture is? What did you copy that? It does not add to this post.
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