Inefficienze finanziarie recenti. (Recent financial inefficiency)

Abstract

 Some unpleasant characteristics of the financial reality over the last few years are examined. First, financial growth was largely based on products that are not exchanged on organized markets, but rather over-the-counter. Moreover, they are often opaque and illiquid, and lack symmetric information. Therefore, important conditions that enable competitive markets to determine efficient allocations were absent. Second, banks tended to reduce risk taking through the packaging of credits into securities. This behaviour generated an increase in moral hazard and consequently, was another source of inefficiency. Third, the rules known as Basel 2 and IAS are strongly pro-cyclical, so that over the long run they favour systemic financial instability. With respect to these three problems, no relevant regulation has been introduced in the U.S. or Europe.

JEL: G01, G21, G24