
A+| A| A-
The Global Crisis and Systemic Risks: Matching Sources with Correctives
Using the literature of pollution control and extending the idea of a Tobin tax, this essay argues that as far as unwanted excessive leverage by financial institutions is concerned, a leverage tax could be thought of. As far as complex financial products are concerned, the solution perhaps lies in transparency and a process of simplification of the products. In handling misrepresentation/fraud, regulatory oversight of products or establishment of effective customer protection agencies could be thought of.
SPECIAL ARTICLE
Arvind Virmani, Partha Ray