Finance

May 28, 2019

Not Everyone’s Cup of Tea

MiFID II, together with MiFIR (Regulation (EU) No 600/2014), was intended to create a more transparent, competitive and integrated financial market in the EU by reducing trading outside regulated markets, increasing protection for investors and consumers, and improving financial stability.
June 7, 2018

Why the EU Needs the City Too

The UK might appear to have the most to lose from Brexit if City firms find it harder to sell financial services into the EU. But London has actually consolidated its position as the world’s leading financial centre since the vote to leave, helped by strong signals that the UK at least will keep its markets open. The EU should follow this lead.
February 28, 2018

Socially Useless? The Crucial Contribution of Finance to Economic Life

Financial firms serve many useful functions which individuals and households could scarcely undertake on their own. These functions include maturity transformation, matching lenders and borrowers at low cost, facilitating the transfer of risk and consumption across time and between people, monitoring, and diversification of investments.
February 16, 2018

Financial Stability Without Central Banks

A ‘free’ banking system without a central bank provides incentives for banks to act with restraint. Their lending policies are, in effect, tied to each other. If one over-reaches, it will be pulled back as others present notes to and demand reserves from the bank that is lending recklessly.