 Collective action and the institutionalist approach to financial regulationPost-Print from HAL Abstract: Drawing on the institutionalist approach to a capitalist economy as a money economy, I regard financial regulation and supervision as a collective action problem. I argue that, given the basic characteristics of such an economy, a financial system may be considered as a public utility and financial stability as a public good. I then maintain that the provision of the latter could not rely on private market mechanisms, such as self-regulation and price-directed incentives. As capitalism develops through more financialized forms, new institutions and regulatory rules must be designed to reframe the market's boundaries in order to consolidate systemic stability, which is a basic condition for continuous and sustainable economic relations in society. I then suggest a precautionary-principle based macro-prudential approach to financial regulation in order to ensure a sustainable provision of finance and financial stability that is consistent with the characteristics of a money economy. Keywords: financial instability; financial regulation; institutionalism; money; economy; precautionary principle; public good (search for similar items in EconPapers) Published in Journal of Economic Issues, 2018, 52 (2), pp.541-549. ⟨10.1080/00213624.2018.1469934⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02090740 DOI: 10.1080/00213624.2018.1469934 Access Statistics for this paper More papers in Post-Print from HAL |
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