It has been a pleasure, and a great challenge, studying Doctor Marta Juanita Villaveces Niño’s,…
Financial Innovation and System Design Mario Tonveronachi
The most relevant financial innovations have been the result of active policies pursued by public authorities, which have intrinsic to them, a specific financial design based on the freedom to create and absorb financial risks. The excesses that are considered as the main culprits of the current crisis are therefore a part of the physiology and not of the pathology of the wanted financial morphology. As a consequence, no regulatory reform can be effective without radical changes in the system design. A general outline of an alternative approach to regulation is presented.
system_design (Download the full text in PDF format)