ESMTcast - "Learning for Leading" | Episode 4: Insights on regulation and risk

In this ESMTcast "Learning for Leading with Avinash D. Persaud," Prof. Persaud, chairman of financial consultancy Intelligence Capital and member of the UN Commission of Experts on International Financial Reform, gives insights into topics surrounding the current financial crisis. He touches upon what better regulation could be, boom and bust cycles and managing risk. He himself takes a risk by looking into the future by addressing the role of free markets in the world economy.

Category:

Education

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• ESMTcast
• esmt
• learning
• leading
• Avinash
• Persaud
• professor
• chairman
• of
• financial
• consultancy
• Intelligence
• Capital
• and
• member
• the
• UN
• Commission
• Experts
• on
• International
• Financial
• Reform

[charlessmyth]

Markets use failures to correct for mistakes. But it is unusual for a market failure in a diverse economy to blow out the entire economy. The market setting of interest more properly regulates the amount of available credit, without the need for any government intervention. This may result in a failure of a particular line of business. But if the business is fundamentally sound, it can be recapitalised at a lower price, and will continue, without the accumulation of unintended consequences.