Home // Forex Trading
PPT : Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding
Content Inside :
Some Indicators of Real-Financial Relations
Background (2): Conceptual Issues
* What Type of Players and Referees?
o Players (Borrowers, Lenders, Intermediators)
+ Knowledge Problems: Information Asymmetries and Computational Skills (Collaterized Securities and Derivatives)
+ Typologies : (i) wealth seeking; esteem seeking and wisdom and truth seeking (Plato) – extrinsic versus intrinsic motivations and (ii) worldly or righteous
+ Moral Strengths and Deficiencies (susceptibility to being corrupted and willingness to corrupt)
+ Implications for Markets; System and Institutions (Moral Suasion vs. Incentives)
o Referees (Regulators)
+ Knowledge Problems; Motivations; Moral Strengths/Deficiencies (susceptibility to corruption)
+ Separation from Players; Guardians or Actors?
Liberalization, Bubbles and Bursts
* Western referees (governments and regulatory agencies like the Fed, OCC and FDIC) have a monumental challenge; striking a balance between protecting the system against systemic volatility and allowing the market to penalize speculators (gamblers) and risky investors.[1] No one knows what the right balance is. It is clear however, that the trade-off is brought about and tightened by deregulation, gambling and risky investments the same forces driving global financial integration.
* Historical evidence indicate that deregulation is known to be behind “just about every banking crisis in recent times.” Much of banking history from the Dutch Tulip bulbs (1637), South Sea Bubble (1720), Mississippi Bubble (1720) to the bubbles of the 1990s has been one of successive speculative bubbles. Recent speculative bubble “tend to be fuelled by an explosion of credit, a wave of unwarranted optimism and a subsequent mispricing of risk” and then, the burst (The Economist, October 28th 2000). In all speculative bubbles, the player-referee relations looms very large.[2] Although, not as direct as was the case in the South Sea Bubble and the Mississippi Bubble, referees have been linked to the unwarranted optimism and mispricing of risks that trigger speculative bubbles. (Garba and Garba, 2001).
My be you need full description for PPT : Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding, you can download this PPT : Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding or online view this PPT : Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding document. This PPT : Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding powerpoint presentation available from category Forex Trading. Download Seminar Paper Powerpoint Presentation PPT : Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding PPT slide and get information about PPT : Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding.
PPT : Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding.ppt
Category : Forex TradingSource : www.cenbank.org
File Size : 283 Kb
Language : English
Online View : Preview
Download : 5 times
Share this info:
Tags: banking crisis, banking history, global financial integration, risky investments