Regulation and Deregulation in the Financial System – The Lessons of the Crises

Author:Vasile IUGA, PwC Romania

JEL:F 30, G 01

DOI:

Keywords:financial regulation, economic crisis, GAAP, GAAS, Steagal-Glass Act, Gramm-Leach-Bliley Act

Abstract:
Analyzing the deep rooted causes of the recent financial crisis, the author compares the current evolutions with the Great Depression of the 1930s, presenting its causes and consequences, as well as the regulatory architecture originated in its aftermath. Also, the author details the long deregulation process that began in the 1960s, its’ causes and the gradual accumulation of risks that the liberalization generated. In the end, analyzing the different regulatory scenarios that were presented lately, the author calls for a financial regulation that minimizes system risks, without denting the perspectives for economic growth. \r\n

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