Controlling Dangerous Financial Products through a Financial Precautionary Principle Gerald Epstein and James Crotty

High risk, opaque, and complex financial products have been among the key causes of the current economic crisis. Not only have these products helped cause the crisis but they have also made it extremely difficult to resolve. In response, a number of analysts have proposed a requirement that financial products be approved by a government regulatory authority before they can be marketed. In this paper the authors outline how a financial products regulatory authority would work.

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