European Parliament Library

Private Finance and Public Policy, Garry Schinasi

This paper articulates a logical foundation-drawn from disparate literatures-for understanding why safeguarding financial stability is an important economic policy objective. The paper also explains why private aspects of finance provide broader social economic benefits and have the characteristics of public goods. Unique aspects of finance are examined, as are the linkages between finance, money, and the real economy. Sources of market imperfections in finance are identified and their implications are analyzed. The arguments imply that reaping the full private and social economic benefits of finance requires both private-collective and public-policy involvement as well as a delicate balance between maximizing the benefits of positive externalities (and public goods) and minimizing the costs (including potential instabilities) of other sources of market imperfections in finance
Table Of Contents
""Contents""; ""I. MOTIVATION AND LOGIC OF PAPER""; ""II. FINANCE AND ITS RELATION TO MONEY""; ""A. What Is Finance?""; ""B. How Is Finance Linked to Money?""; ""III. PRIVATE AND SOCIAL ECONOMIC BENEFITS OF FINANCE""; ""A. Finance Facilitates Intertemporal Economic Processes""; ""B. Modern Essence of Finance: Pricing and Allocating Risk""; ""IV. FINANCE, FRAGILITY, AND EVOLVING SOCIAL ARRANGEMENTS""; ""A. Liquidity, Leverage, and Fragility""; ""B. Financial Institutions and Markets as Evolving Social Arrangements""; ""V. PUBLIC POLICY ASPECTS OF FINANCES""
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (43 p.)
Specific Material Designation
Form Of Item

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