Three years after the financial sector triggered a global recession, not much has changed in world of bank regulation. The financial liberalisation introduced since the 1980s remains defiantly in place, discussion of regulation is still dominated by a ‘hands-off’ approach, and the international institutions are still promoting financial liberalisation and market-friendly regulation as the correct policies.
But new research has just been published which shows very clearly that these policies are wrong – and that they are in fact highly damaging. Remarkably, this evidence comes in a research paper published by the IMF.
