Greater Transparency is Not a Fiscal Panacea
John Eatwell, Queens' College | September, 19 2008
The G7 finance ministers endorsed an approach to regulation in April, which stipulated transparency, disclosure, and strict risk management, i.e., nothing new. ++ This hackneyed approach will fail again. ++ Regulation hasn’t kept up with the last 30 years of market changes and is not needed except to enforce best practice. ++ Regulators must begin to use a system-wide approach, financial institutions must raise buffer reserves, and regulation must be targeted on highly leveraged institutions. ++ Transparency is not a cure-all.
