Boyer, Marcel (2013) Growing out of Crises and Recessions: From Regulating Large Financial Institutions To Redefining Government Responsibilities. TSE Working Paper, n. 13-398, Toulouse

There is a more recent version of this item available.

Preview

Text Download (696kB) | Preview

Abstract

I characterize and discuss in this paper the challenges and pitfalls we must face to grow out for good of the recent and future financial crises and economic recessions. I propose a brief history of the last crisis and insist on the loss of confidence within the banking and financial sector, which propagated later to the real sector. I discuss ways to rebuild confidence and move out of a stable bad economic equilibrium, due in part to inefficiently designed bonus systems. Considering data on gross job creation and loss in the private sector, I challenge the sorcerer’s apprentices plan for reforming capitalism and I recall the role of creative destruction. I show that government deficits and economic growth are not good friends and I offer a reference to the Canadian experience of the two decades 1985-2005. Finally, I discuss fiscal and regulatory reforms and propose redesigned roles for governmental and competitive sectors in generating a more prosperous economy.

Available Versions of this Item

• Growing out of Crises and Recessions: From Regulating Large Financial Institutions To Redefining Government Responsibilities. (deposited 09 Jul 2014 17:35) [Currently Displayed]
  • Growing out of Crises and Recessions: From Regulating Large Financial Institutions To Redefining Government Responsibilities. (deposited 16 Apr 2018 10:12)