“Keynote Speech by Professor Arthur Grimes: Micro-prudential settings and financial markets conduct regulations are important in controlling risk within any country – no matter how well or poorly performing its macroeconomy. In an environment of pervasive information asymmetries, an unfettered market can lead to socially sub-optimal risk-taking. Some restrictions on financial market participants’ activities and disclosure requirements are therefore required. However, adoption of policies that make the financial markets appear low risk, or even risk free, to uninformed participants can result in moral hazard that may produce even less stable outcomes than in a free market. Drawing on New Zealand’s relatively light-handed approach to financial market regulation, this lecture examines whether the GFC and other crises are caused not by too little regulation, but instead by too much.”
Date: 3rd December 2013, 3.00-7.00pm
Location: Institute of Advanced Legal Studies, Charles Clore House, 17 Russell Square, London WC1B 5DR
More information can be found here.