Prof. Alessandro Vercelli: Financialisation and crisis - ten years later

Goldsmiths-IMS Economics Seminar Series

Abstract:

The worst financial crisis after the Great Depression did not determine a radical change in the architecture and regulation strategy of the financial system. This paper aims to analyse the main structural factors that explain this inertia. In consequence of the recent process of financialisation, the financial system underwent a progressive erosion of its traditional role of intermediation between savers and investors but extended its strategic function of creation of money and other financial assets. The neoliberal policy strategy pursued since the late 1970s aimed to deregulate the financial system but eventually established a new form of “vicarious” regulation that proved to be increasingly invasive for financial institutions, and inconsistent with sustainability. A radical reform of the financial system is a necessary requisite of sustainability. Its implementation requires the revival of “directive” regulation in an updated form capable to guide the financial system in a direction consistent with sustainable development.
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Prof. Alessandro Vercelli teaches Economics of Sustainable Development in the Department of Economics and Statistics, University of Siena, Italy. He is a Professorial Research Associate at SOAS, University of London, UK, and is a life member of the Clare Hall, University of Cambridge, UK. He has served as Vice President of the International Economic Association and member of the Executive Committee of the Italian Economic Association. His book "Crisis and Sustainability: The Delusion of Free Markets" was recently published by Palgrave Macmillan UK.

The seminar is free to attend, open to all students, staff and public. No reservation required.

Dates & times

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11 Oct 2017	4:30pm - 5:45pm	apple google outlook

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