In this paper, J. Stiglitz, after having presented his views on the dysfunctions of the financial markets, details what should be the goals and the operative framework for a New Financial Architecture. After having stated that financial markets are “not an end in themselves” and that their monitoring should be understood as a “public good”, a “public responsibility”, J. Stiglitz proposes in order to align private rewards to social returns, to act through a regulation of the incentives at the financial level. Among others, it would seem useful to base bonuses “on performance over at least five years period”, to require “that mortgage originators retain at least a 20% equity share” and to implement a “Government rating agency”. From a practical point of view, J. Stiglitz proposes first, to proscribe “variable rate mortgages in which payments can vary significantly”, second, to limit the “speed of expansion of assets” and, third, to prohibit the purchase or the production of derivatives and financial products by highly regulated entities “unless they have been approved for specific uses by financial products safety commission (FPSC)”. However, J. Stiglitz seems aware of the increasing facilities with which financial institutions can beat the game and suggests that it should exist a “sufficient authority to proscribe such behavior”. Finally, J. Stiglitz calls for more democracy in the monitoring of the economy by suggesting that “those who are affected by the failure of regulation should have a large voice in any regulatory structure”.
Teresa Ribera, premiada por su labor en política internacional
by El Plural 26/01/2024
Teresa Ribera has been recognized by FEPS with the 'Progressive Person of the Year' award during the launch of the 'Progressive Yearbook.' Article by El Plural
Teresa Ribera, premio ‘Pregressive person of the year’ por su labor en política internacional
by Europa Press 26/01/2024
Teresa Ribera has been recognized by FEPS with the 'Progressive Person of the Year' award during the launch of the 'Progressive Yearbook.' Article by Europa Press
Teresa Ribera, galardonada como “progresista” del año por la Fundación FEPS
by Agencia EFE 26/01/2024
Article by Spanish news agency Agencia EFE, republished by other media via newswire
»Der er tale om en markant udvikling«: Det vrimler med Wolt-bude
by Politiken 19/01/2024
'"This is a significant development": Wolt workers are everywhere' Politiken's article about the Digital Programme's first policy study: 'Employment terms of platform workers'
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