LONDON, ENGLAND--(Marketwire - Aug. 19, 2010) - The Future of Finance: The LSE Report presents a novel approach to the reform of the world's financial system, starting with the basic question, what is a financial system for? It shows that the existing system has become far more complicated than it needs to be to discharge its functions - and dangerously unstable into the bargain. It proposes some drastic remedies.
In much the same vein as the recently published Squam Lake Report this book is the work of a group of leading academics, financiers, journalists and officials from the UK's Financial Services Authority, the Bank of England and the UK Treasury. They met twelve times, for what many of those present described as the best and most searching discussions they had ever participated in.
A key theme is that the scale of financial asset creation has been grossly excessive and far beyond the needs of the real economy – which is the ultimate touchstone of a healthy financial system.
The book includes new analyses of how finance affects the real economy, as well as, in some cases, radical reform proposals aimed not only at governments, but also at the giant funds that invest our wealth.
"The UK has been at the epicentre of both the financial crisis and the ongoing debate over the future of finance. Here the leading figures in that debate tell us how to think about the process of financial reform. Their thoughts deserve the widest possible audience, not just in Britain but in the United States and globally."
Barry Eichengreen - University of California, Berkeley
The first author is Adair Turner, chair of the Working Party of the G20 Financial Stability Board reporting to the G20 Summit in November 2010; the others are major international players in policymaking or public debate including Charles Goodhart, John Kay, Martin Wolf, Andrew Haldane, Sushil Wadhwani, Andrew Smithers, Simon Johnson, Paul Woolley, Andrew Large, Peter Boone and Sir Richard Layard.
||1st September 2010