NOTES
1 Clement, James and Van der Wee, ‘Financial Innovation, Regulation and Crises: A Historical View’ 1.
See, for instance, S. Kates (ed.), The Global Financial Crisis: What Have We Learnt? (Cheltenham: Edward Elgar, 2011). 2. T. F. Geithner, Reducing Systemic Risk in a Dynamic Financial System (Federal Reserve Bank of New York, 2008), at http://www.newyorkfed.org/newsevents/speeches/2008/ tfg080609.html [accessed September 2012]. An insider’s plea for reducing the complexity of financial products and the excessive levels of market leverage can be found in R. Bookstaber, A Demon of Our Own Design, Markets, Hedge Funds, and the Perils of Financial Innovation (Hoboken: John Wiley & Sons, 2007). 3. H. Minsky, Can It Happen Again? Essays on Instability and Finance (Armonk: M. E. Sharpe, 1984). 4. R. G. Rajan, ‘Has Financial Development Made the World Riskier?’, NBER Working Paper Series, Working Paper 11728 (National Bureau of Economic Research, MA, 2005). 5. S. Das, Traders, Gus and Money: Knowns and Unknowns in the Dazzling World of Derivatives (Englewood Cliffs: Prentice Hall, 2010), p. 333. 6. N. Gennaioli, A. Shleifer and R. Vishny, Financial Innovation and Financial Fragility (Harvard, MA: Harvard University research paper, 2010). 7. ‘Derivatives and new techniques for risk management have benefited society by providing better means of sharing risks … However, [they] have also expanded the scope for gambling, and they can be used in ways that increase rather than reduce risks in the system’. A. Admati and M. Hellwig, The Bankers’ New Clothes, What’s Wrong with Banking and What to Do about It (Princeton, NJ: Princeton University Press, 2013), p. 70. 8. B. Eichengreen, ‘The Crisis in Financial Innovation’, remarks on the occasion of the award of the Schumpeter Prize of the International Schumpeter Society, Vienna, 20 January 2010, p. 3. 9. M. Haliassos (ed.), Financial Innovation, Too Much or too Little? (Cambridge, MA: MIT Press, 2013), p. ix. 10. D. A. Moss, When All Else Fails, Government as the Ultimate Risk Manager (Cambridge, MA: Harvard University Press, 2004). Moss argues that the introduction of limited liability as early as 1811 in New York State corporate law, was essential in reassuring investors and thereby in generating a supply of risk capital.
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