Regulation of Banks and Finance Theory and Policy after the Credit Crisis C. Peláez; C. Peláez ISBN: 9780230251250 DOI: 10.1057/9780230251250 Palgrave Macmillan Please respect intellectual property rights This material is copyright and its use is restricted by our standard site license terms and conditions (see palgraveconnect.com/pc/info/terms_conditions.html). If you plan to copy, distribute or share in any format, including, for the avoidance of doubt, posting on websites, you need the express prior permission of Palgrave Macmillan. To request permission please contact rights@palgrave.com. [...]... 10.1057/9780230251250 - Regulation of Banks and Finance, Carlos M Peláez and Carlos A Peláez The Theory of Regulation and Finance 9 The sum of the inequalities results in the left-hand side of prices multiplying bundles of goods, or expenditures, higher than the right-hand side of initial endowments, or income, because the allocations of all agents except 1 are at least equal to their initial endowments but that of 1... references, and the index complete the volume 10.1057/9780230251250 - Regulation of Banks and Finance, Carlos M Peláez and Carlos A Peláez 1 The Theory of Regulation and Finance Introduction The objective of this chapter is to provide a general view of the theories of regulation followed by a final section on the role of finance in promoting efficiency and growth The two main approaches are the public... interpretations of the origins of the credit/ dollar crisis: the view of systemic and prudential regulation versus the view on central banking and housing finance Monetary and fiscal policies are reviewed before a final section on the agenda of regulation The conclusion is organized in terms of the two conflicting views on the causes of the credit/ dollar crisis and their implications for the regulatory... once there is a distortion of the first best, the satisfaction of additional marginal conditions need not move the economy to a better outcome The asymmetry of information appears to apply only to the private sector as if the government were omniscient and had command of all the 10.1057/9780230251250 - Regulation of Banks and Finance, Carlos M Peláez and Carlos A Peláez The Theory of Regulation and. .. Regulation of new issues Insider trading The decision of going public Sarbanes-Oxley Listing Summary 6 168 173 177 180 186 196 The Credit/ Dollar Crisis and Recession Regulation Introduction The global recession The Great Depression Banks and money Debt deflation theories Financial market frictions The gold standard Nonmonetary factors Wages and employment Growth theory and the New Deal Origins of the. .. deadweight losses of 1 percent of GDP, but without excluding distortions of price originating in regulation and trade protection There is the counterfactual issue of whether the markets would have been more competitive had there not been antitrust and regulation efforts The 10.1057/9780230251250 - Regulation of Banks and Finance, Carlos M Peláez and Carlos A Peláez 20 Regulation of Banks and Finance research... analysis of the possible loss of competitiveness in finance of the United States The credit/ dollar crisis and resulting global recession are analyzed in Chapter 6 The loss of output of the United States during the Great Depression accumulated to 25.7 percent during 1930–3 Forecasts of the loss of output of the United States in the current recession range from 22 to 24 percent However, the experience of the. .. erosion of their market power by the nationwide distribution of securities The law and economics literature on insider trading raises intriguing issues on the theory and experience with restrictions on insider trading The final set of sections focuses on the decision of going public, the Sarbanes-Oxley Act of 2002 (SOX) and the important research on the decision of cross-listing, which is critical in the. .. with the lobbying for regulation by certain types of business, Milton Friedman (1999) identified a suicidal impulse of parts of the business community The economic theory of regulation This theory is the essence of the private interest view of regulation with predictions that are different than those of the public view The public view predicts that regulation will occur in response to market failures The. .. the policy debate and the catchphrase, as in other recessions, is that these are the worst economic conditions since the Great Depression Chapter 6 provides a comprehensive synthesis of research on the Great Depression organized in subsection on banks and money, debt deflation theories, financial market frictions, the gold standard, nonmonetary factors, wages and employment and growth theory, and the . employment and growth theory, and the New Deal. A section analyzes two interpretations of the origins of the credit/ dollar crisis: the view of systemic and prudential regulation versus the view. - Regulation of Banks and Finance, Carlos M. Peláez and Carlos A. Peláez 4 1 The Theory of Regulation and Finance Introduction The objective of this chapter is to provide a general view of the. PM 10.1057/9780230251250 - Regulation of Banks and Finance, Carlos M. Peláez and Carlos A. Peláez xiv Acknowledgments This book provides an analytical review of regulation of banks and finance in the light of the credit/ dollar