Work Package Leader
TALLINNA TEHNIKAULIKOOL TTU Estonia
To review the conduct of financial regulation and de-regulation since the inception of this process after the break down of the Bretton Woods System and the Monetarist Counter revolution in economics and the Reagan-Thatcher revolution in economic policy, but with special attention to those changes that have taken place over the past two decades to foster financial innovations, and to identify the driving forces behind the changes in the regulatory systems. This will include analysis of the theoretical justification for regulatory changes as well as the role of market participants in informing through consultation with regulatory agencies as well as through their political influence on legislators responsible for proposing regulatory changes. It will also include an assessment of the effectiveness of regulatory changes and a comparison of the costs to particular market operators versus the benefits in terms of systemic stability.
To identify those factors which contributed to the genesis and spread of the crisis across developed country financial markets, co-ordinating this with research in work package 3 on the causes of the financial crisis. To develop new and more effective approaches to financial regulation (broadly conceived) applicable to specific national financial systems and to assess the possibility of international cooperation in introduction of these principles beyond the Basle process.
To review and evaluate the rules and regulations governing financing markets at the national and European level and the impact of bi-lateral over the counter transactions that do not take place in formal regulated or informal markets. This review cannot be fully comprehensive for the entire EU, but will seek to provide coverage for one Baltic country, one central European country outside the Euro and one inside the zone, and major economies of Germany, France, Italy, Spain and the UK.
To evaluate the roles of monetary policy and bank supervisors on one side and of fiscal policy on the other side in influencing the structure, size and behaviour of the financial sector. The absence of an EU regulatory authority will be evaluated, as well as the implications of other aspects of the establishment of the Single Market for the regulatory process.
To review, evaluate and further develop tax policies designed to change the scope and/or structure of the financial sector.